One of the key financial stories of 2017 has been the incredible rise of Bitcoin.The cryptocurrency is up by about 180% since the beginning of this year, with record high price points coming one after another.And still, though Bitcoin's price is hovering around $2700, many big banks and hedge funds have been reluctant to get involved with the digital currency.In an important step for the integration of Bitcoin into the wider financial world, Goldman Sachs started covering the currency this week.However, in its earliest reports, Goldman suggests that Bitcoin may not be able to maintain its ascendant status for long.Goldman Calls Bitcoin "Broadly Heavy" In a report issued at the beginning of this week, Goldman's chief technician, Sheba Jafari, determined that "the balance of signals are looking broadly heavy."Goldman is "wary of a near-term top ahead of 3,134.Consider re-establishing bullish exposure between 2,330 and no lower than 1,915."Put in other terms, it appears that Goldman has taken a bearish view on Bitcoin.

The report continued, "the market has come close (enough?)bitcoin unable to connectto reaching its extended (2.618) target for a 3rd of V-waves from the inception low at 3,134.bitcoin bulbIt's on track to forming a bearish key day reversal if today's close settles below 2,749."uber bitcoin promo(Related: Bitcoin Hits $3000) Bitcoin finished Monday at $2,599, significantly below the threshold of $2,749 that Goldman indicated.bitcoin anleitungAccording to Jafari's report, a close below $2,475 would potentially cause damage to the technical picture.electrum bitcoin"Both daily/weekly oscillators are diverging negatively."bitcoin thai club

What Should Investors Do?The question for most investors, then, is what to do with Bitcoin holdings.ethereum with credit cardJafari isn't the only analyst suggesting that Bitcoin may be reaching for a short-term peak.bitcoin price drop march 2014Billionaire Mark Cuban indicated his belief that there is a Bitcoin bubble in effect, saying that he was cautious whenever "everyone is bragging about how easy that are making money" in a tweet from last week.bitcoin ransom amountAnd yet, there are many proponents of the digital currency who believe that a bubble is a ludicrous idea.Those believing in the long-term strength of Bitcoin believe it is shielded from a bubble because of its decentralized status, its strong security measures including advanced encryption and blockchain ledgers which allow for the tracking and tracing of all transactions, including fraudulent ones, and its as-yet-untapped potential within the broader financial world.

The fact of the matter remains, however, that Bitcoin, and cryptocurrencies more broadly, has yet to prove its place within that larger world.There is no question that Bitcoin has risen to impressive heights of popularity, but whether it will be able to maintain those peaks, and whether it will fully integrate itself into the investment world, remains to be seen.Want to learn how to invest?Get a free 10 week email series that will teach you how to start investing.Delivered twice a week, straight to your inbox.No thanks, I prefer not making money.Bitcoin and cryptocurrencies are part of a technology "megatrend" that could change the fundamental mechanics of transactions, according to a new report from Goldman Sachs' equity research analysts.Bitcoin, along with improved payment security, 'big data' analytics and faster payment networks are the components of a technology trend that will disrupt the payments ecosystem, the report says.The disruption of the $1.2tn global payments industry will be also be driven by converging trends in regulation, global demographics and the rise of markets outside the United States.

"Innovations in network technology and cryptography could change the speed and mechanics of moving money."The report, published yesterday, is titled The Future of Finance: Redefining The Way We Pay in the Next Decade.It's written by James Schneider and SK Prasad Borra, payments analysts at the bank's research division.It comes as the second in a series that has already featured the rise of 'shadow banks'.According to Schneider and Borra, bitcoin's major impact will be enabling the transfer of assets without a central clearing authority.The large public companies that will benefit will be merchants, who will reap savings on payment costs.Firms who might lose out are traditional money-transfer firms like Western Union, Moneygram and Xoom.The report names Coinbase, BitPay and Ripple Labs as the leading firms in the bitcoin space.Bitcoin's impact will be felt in the field of consumer-to-consumer payments, the report says.This market includes all payments made between consumers, with examples of leading vendors being mobile wallets like Venmo and Square Cash.

Disruptive entrants to the consumer payments space are limited to earning revenue from international money transfers, according to the report, a market that's worth $580bn.These entrants include bitcoin exchanges and the peer-to-peer platform for foreign currency exchange TransferWise.Exchanges named in the report include Coinbase, itBit, Circle, Trucoin and CoinCorner.Bitcoin could also play a significant role in global remittances for customers who want to use cash to begin the transfer process.The report points to Bitspark as an example of a firm that lets customers remit funds by depositing cash, bypassing the need for a bank account.Bitspark then performs the transfer by exchanging it into bitcoin.New players could take 20% of the current $30bn consumer-to-consumer market from incumbents over the next 10 years, the analysts estimate.Newcomers will also drive fees down from a current average of 6% of the principal to 2.5%."Distributed networks are, in principle, more secure and reliable due to their open source nature, and there is no single point of failure," the report notes.

"Given the low transaction fees associated with ... virtual currencies, there is potential for significant dislocation in the profit pools associated with money transfer."The Ripple network is highlighted as a bitcoin alternative that could gain acceptance among small banks.The report points to Ripple's partnerships with banks like Fidor, CBW Bank and Cross River Bank as evidence that the network allows these institutions to perform international money transfers without depending on large banking partners.Merchant adoption of bitcoin could rise in coming years, the report found.The analysts conducted a survey with the Electronic Transactions Association that found 23% of merchants planned to accept bitcoin within the next 24 months.The report estimates that more than 100,000 merchants currently take bitcoin payments globally.The analysts stress that merchant adoption of bitcoin is in its "infancy" and that results so far have been inconclusive. falling well short of its bitcoin sales target last year as an example of a merchant who is not enjoying significant benefits from bitcoin payments.