Bitcoin price just secured a new 2020 increased and traders expect the price to rise higher for three key reasons.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to attain $13,217 after traders took out critical resistance levels during $11,900, $12,000, as well as $12,500 in the last 48 hours. While at this time there are various technical reasons driving the abrupt upsurge, you’ll find three factors that are key buoying the rally.
Earlier nowadays, PayPal officially announced it’s allowing users to purchase and sell cryptocurrencies, like Bitcoin.
During the entire past year, speculations on PayPal’s potential cryptocurrency integration constantly intensified after numerous reports claimed the company was working hard 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 as well as regulators around the world to give the assistance of ours, and to meaningfully contribute 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 actually likely going back to the crypto market. In accordance with Chung:
“Bitcoin passing $13,000 nowadays, a 16 month high, demonstrates this trend is only picking up speed. That PayPal, a home title, has gotten a conditional BitLicense is likely propelling bullish sentiment. Today is considerable as a signpost for even more selling price appreciation within the future… the stage by which mainstream media and’ mom & pop’ list investors might possibly soon begin to show fascination in the asset, as they did within late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financing (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, said the dominance of BTC is above a critical moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance returned higher than the 200 day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish high time frame structure Throughout October, traders have pinpointed the favorable specialized framework of Bitcoin on the higher time frames.
Bitcoin’s weekly chart, in particular, has proven a breakout plus surpassed the earlier local 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 said before previously, today’s higher volume surge got the price to a new 2020 high at $13,217, which is well above the prior neighborhood top.
In the short-term, traders foresee that the market will cool down soon after such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we are quite overextended on $BTC for right now. I would imagine experiencing a tad of a retrace where by we try and find support in the 12.2-12k range. Not saying we can’t run more, but hedged a bit here.”