Bitcoin price simply secured a brand new 2020 increased and traders expect the price to rise higher for 3 key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to attain $13,217 following traders took out critical resistance levels during $11,900, $12,000, and also $12,500 during the last 48-hours. While generally there are various technical factors driving the abrupt upsurge, you will find 3 important factors buoying the rally.
Earlier nowadays, PayPal officially announced that it’s allowing users to purchase and sell cryptocurrencies, like Bitcoin.
Throughout the past season, speculations on PayPal’s potential cryptocurrency integration constantly intensified after a variety of reports claimed the company was working on it.
In an official statement, Dan Schulman, the president and CEO of PayPal, established the cryptocurrency integration. He wrote:
“We are wanting to work with central banks and regulators all over the world to give the support of ours, as well as to meaningfully contribute to shaping the task 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 that bullish sentiment is actually likely returning to the crypto market. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16 month high, demonstrates that this trend is just picking up speed. That PayPal, a household name, has gotten a conditional BitLicense is likely propelling bullish sentiment. Today is considerable as a signpost for further selling price appreciation in the future… the point by that mainstream press and’ mom and pop’ list investors might possibly soon start to show fascination in the asset, as they did in late 2017.”
Bitcoin dominance is actually rising In the previous week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financial (DeFi) tokens, as well as Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, mentioned the dominance of BTC is actually above a key moving average. Technically, this hints that Bitcoin might go on to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back higher than the 200-day moving average for the first time since May, king corn is back.”
BTC shows a bullish high time frame structure Throughout October, traders have pinpointed the advantageous technical structure of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, particularly, has shown a breakout plus surpassed the earlier local top achieved in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and proceeded to fall under $10,000. As stated previously, today’s high volume surge took the cost to a new 2020 high at $13,217, and that is well above the earlier local top.
In the short-term, traders foresee that the market will cool down soon after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I believe we’re quite overextended on $BTC for now. I would imagine getting a tad of a retrace where we try to find assistance in the 12.2-12k range. Not saying we can’t run further, but hedged a bit here.”