Bitcoin price simply secured a new 2020 high and traders count on the retail price to increase higher for three key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out critical resistance levels during $11,900, $12,000, and also $12,500 within the last 48-hours. While at this time there are actually many technical factors driving the abrupt upsurge, there are 3 factors which are key buoying the rally.
Earlier nowadays, PayPal officially announced that it is allowing users to purchase as well as sell cryptocurrencies, like Bitcoin.
During the entire past season, speculations on PayPal’s likely cryptocurrency integration continuously intensified after various reports claimed the company was doing work on it.
In an official declaration, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are eager to work with central banks and regulators around the world to offer the support of ours, and also to meaningfully add to shaping the job that digital currencies will play 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 actually likely going back to the crypto market. According to Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates this trend is just picking up speed. That PayPal, a household name, has received a conditional BitLicense is very likely propelling bullish sentiment. Today is substantial as a signpost for further selling price appreciation inside the future… the stage by that mainstream press and’ mom and pop’ list investors may quickly start to show interest in the asset, as they did in late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, mentioned the dominance of BTC is above a crucial moving average. Technically, this hints that Bitcoin might will begin to outperform altcoins inside the near term. Olszewicz said:
“BTC dominance returned above the 200 day moving average for the first time since May, king corn is back.”
BTC shows a bullish higher time frame structure Throughout October, traders have pinpointed the favorable technical structure of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, particularly, has revealed a breakout and surpassed the previous local top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and proceeded to fall below $10,000. As mentioned 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 neighborhood top.
In the short term, traders anticipate that the industry will cool down soon after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are extremely overextended on $BTC for right now. I’d imagine getting a tad of a retrace in which we attempt to find support in the 12.2 12k range. Not saying we cannot run further, but hedged a bit here.”