Bitcoin price simply secured a new 2020 high and traders count on the purchase price to climb higher for 3 key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 following traders took out key resistance levels at $11,900, $12,000, and $12,500 during the last 48-hours. While at this time there are actually many technical reasons driving the abrupt upsurge, you will find three factors that are important buoying the rally.
Earlier these days, PayPal officially announced that it is allowing users to purchase and sell cryptocurrencies, like Bitcoin.
Over the previous season, speculations on PayPal’s possible cryptocurrency integration constantly intensified after numerous reports claimed the company was doing work on it.
In an official statement, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are eager to work with central banks and regulators all over the world to offer our support, and to meaningfully add to shaping the task that digital currencies will perform down the road of global finance as well as commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph which bullish sentiment is actually likely going back to the crypto market. In accordance with Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates that this trend is just picking up pace. That PayPal, a family name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is significant as a signpost for further price appreciation in the future… the place by that mainstream press and’ mom & pop’ retail investors may eventually begin to show interest in the asset, since they did within late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed alternative cryptocurrencies, decentralized financial (DeFi) tokens, and also Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, said the dominance of BTC is actually above a key moving average. Technically, this hints that Bitcoin might continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance back higher than the 200-day moving average for the first time since May, king corn is back.”
BTC shows a bullish high time frame system Throughout October, traders have pinpointed the advantageous technical structure of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, in particular, has shown a breakout and surpassed the previous area top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and then proceeded to fall under $10,000. As mentioned previously, today’s higher volume surge took the cost to a brand new 2020 very high at $13,217, which is well above the previous neighborhood top.
In the short term, traders anticipate that the industry will cool down right after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we’re quite overextended on $BTC for right now. I’d imagine experiencing a bit of a retrace where by we try and find assistance in the 12.2 12k range. Not saying we can’t run more, but hedged a tad here.”