Bitcoin price simply secured a fresh 2020 increased and traders count on the price to rise higher for 3 key reasons.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 after traders took out critical resistance levels during $11,900, $12,000, and $12,500 during the last 48-hours. While generally there are many specialized causes driving the abrupt upsurge, there are 3 factors which are key buoying the rally.
Earlier today, PayPal officially announced it is allowing users to purchase and sell cryptocurrencies, like Bitcoin.
Over the past season, speculations on PayPal’s possible cryptocurrency integration continuously intensified after numerous reports claimed the company was working on it.
In an official statement, Dan Schulman, the president and CEO of PayPal, established the cryptocurrency integration. He wrote:
“We are desperate to work with central banks as well as regulators all over the world to give our assistance, as well as to meaningfully contribute to shaping the task that digital currencies will perform down the road of global 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 market. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16 month high, demonstrates this trend is just picking up pace. That PayPal, a house name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is substantial as a signpost for even more price appreciation in the future… the point by that mainstream press and’ mom and pop’ retail investors may soon start to show fascination in the asset, because they did inside late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed alternative 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 critical moving average. Technically, this hints that Bitcoin can continue to outperform altcoins within the near term. Olszewicz said:
“BTC dominance returned above the 200-day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish higher time frame system Throughout October, traders have pinpointed the advantageous specialized framework of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has proven a breakout and surpassed the earlier 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 said before earlier, today’s higher volume surge procured the price to a brand new 2020 very high at $13,217, and that is well above the earlier local top.
In the short-term, traders foresee that the industry will cool down soon after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are quite overextended on $BTC for today. I’d imagine seeing a tad of a retrace where by 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.”