Bitcoin price just secured a new 2020 high and traders expect the purchase price to increase higher for 3 important reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 following traders took out key resistance levels at $11,900, $12,000, and also $12,500 during the last 48-hours. While there are different specialized factors behind the abrupt upsurge, you’ll find 3 factors that are important buoying the rally.
Earlier now, PayPal officially announced it’s allowing users to invest in as well as sell cryptocurrencies, like Bitcoin.
Over the older year, speculations on PayPal’s likely cryptocurrency integration constantly intensified after a variety of reports claimed the business 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 as well as regulators around the world to offer our support, as well as 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 which bullish sentiment is actually likely returning to the crypto market. According to Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates that this pattern is only picking up pace. That PayPal, a home title, has received a conditional BitLicense is actually likely propelling bullish sentiment. Today is actually significant as a signpost for more price appreciation within the future… the place by which mainstream mass media and’ mom & pop’ retail investors may eventually begin to show interest in the asset, because they did within late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, said the dominance of BTC is actually above a crucial moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance back above the 200-day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish high time frame system Throughout October, traders have pinpointed the advantageous specialized framework of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, in particular, has proven a breakout plus 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 took the cost to a brand new 2020 very high at $13,217, and that is well above the prior local top.
In the short term, traders foresee that the market will cool down right after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we’re extremely overextended on $BTC for today. I would imagine getting a tad of a retrace in which we attempt to find assistance in the 12.2 12k range. Not saying we cannot run more, but hedged a tad here.”