Bitcoin price simply secured a new 2020 high and traders count on the price to increase higher for 3 important factors.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 after traders took out critical resistance levels at $11,900, $12,000, and $12,500 in the last 48-hours. While at this time there are different technical factors behind the abrupt upsurge, there are 3 factors which are key buoying the rally.
Earlier today, PayPal officially announced it is allowing users to invest in and sell cryptocurrencies, including Bitcoin.
During the entire older year, speculations on PayPal’s possible cryptocurrency integration continuously intensified after a variety of reports claimed the company was working on it.
In an official declaration, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are wanting to work with central banks as well as regulators all over the world to offer the support of ours, and also to meaningfully contribute to shaping the role that digital currencies will perform down the road of worldwide finance as well as commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph which bullish sentiment is likely going back to the crypto market. Based on Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates this pattern is just picking up speed. That PayPal, a home name, has gotten a conditional BitLicense is very likely propelling bullish sentiment. Today is actually substantial as a signpost for even more selling price appreciation within the future… the place by that mainstream media and’ mom & pop’ list investors may soon start to show fascination in the asset, as they did within late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed alternative cryptocurrencies, decentralized financing (DeFi) tokens, as well as Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, mentioned the dominance of BTC is actually above a key moving average. Technically, this implies that Bitcoin can go on to outperform altcoins in the near term. Olszewicz said:
“BTC dominance back above the 200 day moving average for the very first time since May, king corn is actually back.”
BTC shows a bullish higher time frame system Throughout October, traders have pinpointed the advantageous technical framework of Bitcoin on the higher time frames.
Bitcoin’s weekly chart, particularly, has proven a breakout and surpassed the previous local top attained in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and then proceeded to fall below $10,000. As said before earlier, today’s high volume surge got the cost to a new 2020 very high at $13,217, and that is well above the previous local top.
In the short-term, traders anticipate that the industry will cool down after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I think we are quite overextended on $BTC for right now. I would imagine experiencing a tad of a retrace in which we attempt to find support in the 12.2-12k range. Not saying we can’t run more, but hedged a bit here.”