Bitcoin price simply secured a new 2020 increased and traders count on the retail price to climb higher for 3 key factors.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out key resistance levels during $11,900, $12,000, and also $12,500 within the last 48 hours. While there are different technical factors behind the abrupt upsurge, you will find 3 key factors buoying the rally.
Earlier these days, PayPal officially announced it’s allowing users to buy and sell cryptocurrencies, including Bitcoin.
During the entire older season, speculations on PayPal’s likely cryptocurrency integration continuously intensified after a variety of reports claimed the company was working on it.
In an official statement, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are eager to work with central banks and regulators all over the world to give the assistance of ours, and to meaningfully contribute to shaping the job that digital currencies will play down the road of worldwide finance and commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph which bullish sentiment is likely returning to the crypto market. According to Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates that this trend is only picking up speed. That PayPal, a house name, has received a conditional BitLicense is actually likely propelling bullish sentiment. Today is considerable as a signpost for even more price appreciation in the future… the stage by which mainstream press and’ mom and pop’ list investors may eventually begin to show interest in the asset, because they did inside late 2017.”
Bitcoin dominance is actually rising In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, and also Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, said the dominance of BTC is above a critical moving average. Technically, this suggests that Bitcoin might continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance returned over the 200-day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish high time frame system Throughout October, traders have pinpointed the favorable specialized framework of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, in particular, has proven a breakout and surpassed the earlier local 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 mentioned previously, today’s high volume surge got the price to the latest 2020 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 think we are really overextended on $BTC for today. I would imagine seeing a bit of a retrace where we make an effort to find support in the 12.2 12k range. Not saying we cannot run more, but hedged a bit here.”