Bitcoin price just secured a fresh 2020 high and traders count on the purchase price to rise higher for three important reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out key resistance levels at $11,900, $12,000, as well as $12,500 in the last 48 hours. While there are different technical reasons behind the abrupt upsurge, there are 3 factors that are important buoying the rally.
Earlier nowadays, PayPal officially announced it’s allowing users to invest in as well as sell cryptocurrencies, including Bitcoin.
Throughout the past year, speculations on PayPal’s potential cryptocurrency integration constantly intensified after numerous reports claimed the company was doing work 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 as well as regulators all over the world to offer our assistance, and to meaningfully add to shaping the job that digital currencies will perform down the road of global 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 sector. Based on Chung:
“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates this pattern is only picking up speed. That PayPal, a house name, has gotten a conditional BitLicense is very likely propelling bullish sentiment. Today is actually substantial as a signpost for even more price appreciation in the future… the stage by which mainstream media and’ mom & 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 substitute cryptocurrencies, decentralized finance (DeFi) tokens, as well as Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, mentioned the dominance of BTC is above a key moving average. Technically, this hints that Bitcoin can continue to outperform altcoins inside 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 system Throughout October, traders have pinpointed the favorable specialized framework of Bitcoin on the higher time frames.
Bitcoin’s weekly chart, particularly, has proven a breakout and surpassed the previous area top achieved in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and then proceeded to fall under $10,000. As stated earlier, today’s higher volume surge took the cost to a new 2020 very high at $13,217, which is well above the previous local top.
In the short-term, traders anticipate that the market will cool down soon after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I think we’re quite overextended on $BTC for today. I’d imagine seeing a tad of a retrace where by we try and find support in the 12.2-12k range. Not saying we can’t run further, but hedged a tad here.”