Bitcoin price simply secured a fresh 2020 high and traders count on the price to climb higher for 3 key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 after traders took out key resistance levels during $11,900, $12,000, and also $12,500 during the last 48 hours. While there are many specialized causes powering the abrupt upsurge, there are 3 factors that are important buoying the rally.
Earlier nowadays, PayPal officially announced that it’s allowing users to purchase as well as sell cryptocurrencies, including Bitcoin.
During the entire previous year, speculations on PayPal’s possible cryptocurrency integration continuously intensified after a variety of reports claimed the business 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 support, and to meaningfully add to shaping the job that digital currencies will play in the future of global 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 sector. 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 gotten a conditional BitLicense is very likely propelling bullish sentiment. Today is actually considerable as a signpost for further selling price appreciation within the future… the point by that mainstream press and’ mom and pop’ retail investors might eventually start to show interest in the asset, because they did in late 2017.”
Bitcoin dominance is 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, mentioned the dominance of BTC is actually above a critical moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins inside 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 system Throughout October, traders have pinpointed the advantageous technical structure of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, in particular, has proven a breakout and surpassed the previous area top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and proceeded to fall below $10,000. As stated previously, today’s higher volume surge procured the cost to a brand new 2020 high at $13,217, which is well above the previous local top.
In the short term, traders foresee that the industry will cool down soon after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we’re very overextended on $BTC for today. I’d imagine seeing a bit of a retrace where we attempt to find support in the 12.2-12k range. Not saying we cannot run more, but hedged a bit here.”