Bitcoin price just secured a fresh 2020 high and traders count on the price to increase higher for three important reasons.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to attain $13,217 after traders took out key resistance levels during $11,900, $12,000, and also $12,500 in the last 48-hours. While there are many specialized factors behind the abrupt upsurge, there are three important factors buoying the rally.
Earlier today, PayPal officially announced that it is allowing users to purchase as well as sell cryptocurrencies, including Bitcoin.
During the entire previous season, speculations on PayPal’s potential cryptocurrency integration continuously intensified after various reports claimed the company was working on it.
In an official statement, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are desperate to work with central banks and regulators around the world to give the assistance of ours, and to meaningfully add to shaping the task that digital currencies will play 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 returning to the crypto sector. According to Chung:
“Bitcoin passing $13,000 today, a 16 month high, demonstrates this trend is only picking up speed. That PayPal, a house title, has gotten a conditional BitLicense is likely propelling bullish sentiment. Today is substantial as a signpost for more cost appreciation inside the future… the point by that mainstream mass media and’ mom & pop’ retail investors might eventually start to show interest in the asset, because they did within late 2017.”
Bitcoin dominance is rising In the previous 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 critical moving average. Technically, this hints that Bitcoin could continue to outperform altcoins within the near term. Olszewicz said:
“BTC dominance returned above the 200-day moving average for the very first time since May, king corn is back.”
BTC shows a bullish higher time frame structure Throughout October, traders have pinpointed the favorable technical framework of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, particularly, has proven a breakout and surpassed the earlier area top achieved in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and then proceeded to fall below $10,000. As said before previously, today’s high volume surge got the price to a brand new 2020 high at $13,217, which is well above the earlier neighborhood top.
In the short-term, traders foresee that the market will cool down right after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we’re really overextended on $BTC for today. I’d imagine getting a bit of a retrace where we attempt to find assistance in the 12.2-12k range. Not saying we cannot run more, but hedged a bit here.”