Bitcoin price just secured a new 2020 superior and traders count on the cost to increase higher for three key reasons.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out key resistance levels at $11,900, $12,000, and $12,500 within the last 48-hours. While there are various technical causes driving the abrupt upsurge, you will find 3 key factors buoying the rally.
Earlier today, PayPal officially announced that it is allowing users to buy as well as sell cryptocurrencies, like Bitcoin.
Throughout the previous year, speculations on PayPal’s potential cryptocurrency integration continuously intensified after a variety of reports claimed the business was doing work on it.
In an official statement, Dan Schulman, the president and CEO of PayPal, established the cryptocurrency integration. He wrote:
“We are desperate to work with central banks as well as regulators all over the world to give our support, and also to meaningfully contribute to shaping the role that digital currencies will perform down the road of global finance and commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph which bullish sentiment is actually likely returning to the crypto market. In accordance with Chung:
“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates that this trend is just picking up speed. That PayPal, a family title, has received a conditional BitLicense is likely propelling bullish sentiment. Today is actually significant as a signpost for even more price appreciation in the future… the stage by that mainstream mass media and’ mom and pop’ retail investors may soon begin to show fascination in the asset, since they did inside late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, stated the dominance of BTC is above a crucial moving average. Technically, this hints that Bitcoin could continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance back above 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 structure of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has revealed a breakout plus surpassed the earlier local top achieved in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and proceeded to fall under $10,000. As said before earlier, today’s higher volume surge took the price to a brand new 2020 very high at $13,217, and that is well above the prior local top.
In the short term, traders anticipate that the industry will cool down following such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are extremely overextended on $BTC for right now. I’d imagine seeing a bit of a retrace where we make an effort to find assistance in the 12.2-12k range. Not saying we can’t run more, but hedged a bit here.”