Bitcoin price simply secured a new 2020 high and traders count on the retail price to climb higher for three important factors.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to attain $13,217 after traders took out critical resistance levels at $11,900, $12,000, and $12,500 during the last 48-hours. While there are different technical factors powering the abrupt upsurge, you will find three important factors buoying the rally.
Earlier nowadays, PayPal officially announced that it’s allowing users to purchase as well as sell cryptocurrencies, including Bitcoin.
Throughout the older year, speculations on PayPal’s possible cryptocurrency integration continuously 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 eager to work with central banks as well as regulators around the world to offer the support of ours, and to meaningfully add to shaping the task that digital currencies will have fun with in the future 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 market. Based on Chung:
“Bitcoin passing $13,000 today, a 16 month high, demonstrates that this trend is just picking up pace. That PayPal, a house name, has received a conditional BitLicense is actually likely propelling bullish sentiment. Today is substantial as a signpost for further selling price appreciation in the future… the point by that mainstream press and’ mom & pop’ list investors might soon begin to show fascination in the asset, because they did inside late 2017.”
Bitcoin dominance is rising In the past 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 technical analyst, said the dominance of BTC is above a critical moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the near term. Olszewicz said:
“BTC dominance back above the 200-day moving average for the very first time since May, king corn is back.”
BTC shows a bullish high time frame structure Throughout October, traders have pinpointed the favorable specialized framework of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has shown a breakout plus surpassed the previous local top achieved 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 took the cost to the latest 2020 high at $13,217, and that is well above the previous local top.
In the short term, traders anticipate that the industry will cool down after such a strong rally. Flood, a pseudonymous crypto futures trader, said:
“I think we are quite overextended on $BTC for now. I would imagine getting a bit of a retrace where by we try to find assistance in the 12.2 12k range. Not saying we cannot run further, but hedged a tad here.”