Bitcoin price simply secured a new 2020 superior and traders count on the cost to rise higher for 3 key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 following traders took out key resistance levels during $11,900, $12,000, and also $12,500 in the last 48-hours. While generally there are many technical factors powering the abrupt upsurge, there are three important factors buoying the rally.
Earlier today, PayPal officially announced it’s allowing users to purchase and sell cryptocurrencies, including Bitcoin.
During the entire previous year, speculations on PayPal’s likely cryptocurrency integration continuously intensified after numerous reports claimed the company was working on it.
In an official declaration, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are wanting to work with central banks as well as regulators around the world to give our assistance, and also to meaningfully contribute to shaping the role that digital currencies will have fun with 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 going back to the crypto market. In accordance with Chung:
“Bitcoin passing $13,000 today, a 16 month high, demonstrates that this pattern is just picking up pace. That PayPal, a family name, has received a conditional BitLicense is very likely propelling bullish sentiment. Today is significant as a signpost for even more cost appreciation inside the future… the place by that mainstream media and’ mom and pop’ retail investors might quickly start to show interest in the asset, as they did inside late 2017.”
Bitcoin dominance is actually rising In the previous week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, and also 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 continue to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back 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 structure Throughout October, traders have pinpointed the favorable technical framework of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, particularly, has revealed a breakout and 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 under $10,000. As mentioned earlier, today’s higher volume surge took the price to the latest 2020 high at $13,217, which is well above the prior local top.
In the short term, traders foresee that the industry will cool down soon after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we’re extremely overextended on $BTC for now. I would imagine getting a tad of a retrace in which we make an effort to find support in the 12.2-12k range. Not saying we can’t run further, but hedged a tad here.”