Bitcoin price just secured a fresh 2020 high and traders count on the purchase price to climb higher for three important reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to attain $13,217 after traders took out critical resistance levels during $11,900, $12,000, as well as $12,500 within the last 48 hours. While generally there are many technical causes behind the abrupt upsurge, there are three factors that are key buoying the rally.
Earlier these days, PayPal officially announced that it is allowing users to invest in as well as sell cryptocurrencies, like Bitcoin.
Over the previous season, speculations on PayPal’s possible cryptocurrency integration constantly intensified after various reports claimed the company was working hard on it.
In an official declaration, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are eager to work with central banks as well as regulators all over the world to offer our support, and also to meaningfully contribute to shaping the job that digital currencies will perform in the future of worldwide finance and commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is likely going back to the crypto sector. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates this trend is only picking up speed. That PayPal, a house name, has received a conditional BitLicense is actually very likely propelling bullish sentiment. Today is actually considerable as a signpost for more cost appreciation within the future… the place by which mainstream mass media and’ mom and pop’ list investors may quickly start to show interest in the asset, as they did in late 2017.”
Bitcoin dominance is actually rising In the past week, Bitcoin has outperformed substitute cryptocurrencies, decentralized finance (DeFi) tokens, and also Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, mentioned the dominance of BTC is actually above a crucial moving average. Technically, this implies that Bitcoin can go on to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back over the 200 day moving average for the very first time since May, king corn is actually back.”
BTC shows a bullish high time frame structure Throughout October, traders have pinpointed the advantageous specialized framework of Bitcoin on the higher time frames.
Bitcoin’s weekly chart, in particular, has revealed a breakout plus surpassed the earlier area top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and then proceeded to fall below $10,000. As stated earlier, today’s high volume surge got the price to a new 2020 high at $13,217, which is well above the previous neighborhood top.
In the short-term, traders anticipate that the market will cool down after such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we’re quite overextended on $BTC for right now. I’d imagine seeing a bit of a retrace where by we try to find assistance in the 12.2-12k range. Not saying we can’t run more, but hedged a bit here.”