Bitcoin price simply secured a new 2020 high and traders expect the purchase 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 key resistance levels at $11,900, $12,000, as well as $12,500 within the last 48-hours. While there are different specialized causes driving the abrupt upsurge, you’ll find 3 factors which are important buoying the rally.
Earlier today, PayPal officially announced that it’s allowing users to buy and sell cryptocurrencies, like Bitcoin.
Over the previous season, speculations on PayPal’s potential cryptocurrency integration continuously intensified after numerous reports claimed the company was working 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 and regulators around the world to give our support, as well as to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance as well as commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is likely returning to the crypto sector. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16 month high, demonstrates that this trend is just picking up speed. That PayPal, a family title, has received a conditional BitLicense is actually likely propelling bullish sentiment. Today is substantial as a signpost for more selling price appreciation inside the future… the place by which mainstream press and’ mom and pop’ list investors might possibly eventually start to show interest in the asset, since they did inside late 2017.”
Bitcoin dominance is actually rising In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized financing (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 hints that Bitcoin can go on to outperform altcoins inside the near term. Olszewicz said:
“BTC dominance returned 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 system Throughout October, traders have pinpointed the advantageous specialized structure of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has shown a breakout and surpassed the previous area top attained in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and then proceeded to fall below $10,000. As mentioned earlier, today’s higher volume surge procured the price to the latest 2020 high at $13,217, which is well above the earlier local top.
In the short term, traders foresee that the industry will cool down right after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I think we’re quite overextended on $BTC for right now. I would imagine seeing a bit 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 tad here.”