Bitcoin price simply secured a brand new 2020 high and traders expect the retail price to climb higher for 3 key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 following traders took out critical resistance levels during $11,900, $12,000, and $12,500 in the last 48-hours. While there are actually different specialized factors behind the abrupt upsurge, there are three factors that are key buoying the rally.
Earlier today, PayPal officially announced that it’s allowing users to buy as well as sell cryptocurrencies, including Bitcoin.
During the entire past season, speculations on PayPal’s possible cryptocurrency integration continuously intensified after numerous reports claimed the company was working on it.
In an official statement, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are wanting to work with central banks as well as regulators around the world to give the support of ours, and to meaningfully contribute to shaping the task that digital currencies will play down the road of global finance as well as commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is likely returning to the crypto market. In accordance with Chung:
“Bitcoin passing $13,000 today, a 16 month high, demonstrates this pattern is only picking up pace. That PayPal, a family name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is actually significant as a signpost for even more selling price appreciation within the future… the stage by which mainstream mass media and’ mom and pop’ retail investors might possibly quickly start to show interest in the asset, since they did in late 2017.”
Bitcoin dominance is actually rising In the previous week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (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 critical moving average. Technically, this implies that Bitcoin can continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance returned higher than the 200 day moving average for the very first time since May, king corn is back.”
BTC shows a bullish high time frame structure Throughout October, traders have pinpointed the advantageous specialized structure of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, for example, has revealed a breakout plus 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 price to the latest 2020 very high at $13,217, and that is well above the earlier local top.
In the short-term, traders anticipate that the market will cool down soon after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are really overextended on $BTC for today. I would imagine experiencing a tad of a retrace where by we try and find support in the 12.2-12k range. Not saying we cannot run more, but hedged a tad here.”