Bitcoin price simply secured a fresh 2020 high and traders count on the price to rise higher for 3 key factors.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to attain $13,217 following traders took out critical resistance levels at $11,900, $12,000, as well as $12,500 during the last 48-hours. While at this time there are various specialized reasons powering the abrupt upsurge, there are 3 key factors buoying the rally.
Earlier today, PayPal officially announced that it is allowing users to buy and sell cryptocurrencies, like Bitcoin.
Over the past season, speculations on PayPal’s possible cryptocurrency integration constantly intensified after numerous reports claimed the company was working hard on it.
In an official declaration, Dan Schulman, the president and CEO of PayPal, established the cryptocurrency integration. He wrote:
“We are eager to work with central banks and regulators all over the world to offer our support, as well as to meaningfully add to shaping the role that digital currencies will have fun with 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. Based on Chung:
“Bitcoin passing $13,000 nowadays, a 16 month high, demonstrates that this pattern is only picking up pace. That PayPal, a family name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is actually substantial as a signpost for even more cost appreciation within the future… the point by that mainstream media and’ mom and pop’ retail investors may eventually begin to show interest in the asset, because they did in late 2017.”
Bitcoin dominance is actually rising In the previous 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, stated the dominance of BTC is actually above a critical moving average. Technically, this implies that Bitcoin might will begin to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back over the 200 day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish higher time frame structure Throughout October, traders have pinpointed the favorable technical framework of Bitcoin on the higher time frames.
Bitcoin’s weekly chart, for example, has revealed a breakout and surpassed the earlier area top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and then proceeded to fall below $10,000. As stated earlier, today’s high volume surge got the price to a new 2020 very high at $13,217, and that is well above the prior local 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 feel we are really overextended on $BTC for now. I’d imagine experiencing a bit of a retrace where we try to find assistance in the 12.2 12k range. Not saying we can’t run more, but hedged a bit here.”