Bitcoin price simply secured a fresh 2020 superior and traders count on the retail price to climb higher for three important 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, as well as $12,500 within the last 48-hours. While at this time there are actually various technical factors driving the abrupt upsurge, you will find three key factors buoying the rally.
Earlier these days, PayPal officially announced it’s allowing users to buy and sell cryptocurrencies, like Bitcoin.
Over the past season, speculations on PayPal’s likely cryptocurrency integration constantly intensified after numerous reports claimed the business was working on it.
In an official statement, Dan Schulman, the president and CEO of PayPal, established the cryptocurrency integration. He wrote:
“We are eager to work with central banks and regulators all over the world to give our support, and to meaningfully contribute to shaping the role that digital currencies will play 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 returning to the crypto market. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates this pattern is only picking up pace. That PayPal, a family name, has gotten a conditional BitLicense is actually likely propelling bullish sentiment. Today is actually significant as a signpost for further selling price appreciation in the future… the point by that mainstream media and’ mom & pop’ retail investors may soon start to show fascination in the asset, since they did within late 2017.”
Bitcoin dominance is actually rising In the past week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (DeFi) tokens, as well as Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, stated the dominance of BTC is above a key moving average. Technically, this implies that Bitcoin could go on to outperform altcoins inside 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 actually back.”
BTC shows a bullish higher time frame structure Throughout October, traders have pinpointed the advantageous technical framework of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has shown a breakout plus surpassed the previous local top achieved in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and proceeded to fall under $10,000. As stated earlier, today’s high volume surge procured the cost to a brand new 2020 very high at $13,217, which is well above the prior neighborhood top.
In the short term, traders anticipate that the market will cool down after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are really overextended on $BTC for now. I would imagine getting a bit of a retrace where we try and find assistance in the 12.2 12k range. Not saying we can’t run further, but hedged a tad here.”