Bitcoin price simply secured a new 2020 increased and traders count on the price to climb higher for 3 key factors.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 following traders took out key resistance levels during $11,900, $12,000, and also $12,500 within the last 48 hours. While there are various specialized causes powering the abrupt upsurge, there are 3 factors which are important buoying the rally.
Earlier today, PayPal officially announced that it is allowing users to buy and sell cryptocurrencies, like Bitcoin.
Over the past year, speculations on PayPal’s potential cryptocurrency integration continuously intensified after numerous reports claimed the business 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 wanting to work with central banks as well as regulators around the world to offer our support, and also to meaningfully add to shaping the task that digital currencies will perform 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 likely going back to the crypto sector. According to Chung:
“Bitcoin passing $13,000 today, a 16 month high, demonstrates that this trend is just picking up speed. That PayPal, a household name, has received a conditional BitLicense is actually very likely propelling bullish sentiment. Today is substantial as a signpost for more selling price appreciation inside the future… the stage by that mainstream press and’ mom & pop’ retail investors may eventually begin to show fascination in the asset, since they did inside late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, stated the dominance of BTC is actually above a key moving average. Technically, this suggests that Bitcoin might will begin 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 higher 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 revealed a breakout plus surpassed the previous local top achieved in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As mentioned previously, today’s higher volume surge took the cost to the latest 2020 high at $13,217, which is well above the earlier local top.
In the short-term, traders anticipate that the market will cool down soon after such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we are extremely overextended on $BTC for now. I’d imagine experiencing a tad of a retrace where we make an effort to find assistance in the 12.2 12k range. Not saying we can’t run further, but hedged a bit here.”