Bitcoin price simply secured a brand new 2020 increased and traders expect the price to climb higher for three important factors.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out key resistance levels at $11,900, $12,000, as well as $12,500 within the last 48 hours. While generally there are different technical factors driving the abrupt upsurge, you’ll find three factors that are key buoying the rally.
Earlier these days, PayPal officially announced that it’s allowing users to purchase and sell cryptocurrencies, including Bitcoin.
Throughout the older year, speculations on PayPal’s possible cryptocurrency integration constantly intensified after various reports claimed the company 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 eager to work with central banks as well as regulators all over the world to offer the support of ours, as well as to meaningfully contribute to shaping the role that digital currencies will play 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 sector. In accordance with Chung:
“Bitcoin passing $13,000 today, a 16-month high, demonstrates that this trend is only picking up pace. That PayPal, a home name, has gotten a conditional BitLicense is likely propelling bullish sentiment. Today is considerable as a signpost for further price appreciation in the future… the place by which mainstream press and’ mom & pop’ list investors might soon 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 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 might continue to outperform altcoins inside the near term. Olszewicz said:
“BTC dominance returned over the 200-day moving average for the very first time since May, king corn is actually back.”
BTC shows a bullish higher time frame system Throughout October, traders have pinpointed the favorable technical framework of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, particularly, has revealed a breakout plus surpassed the previous area top achieved in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As said before earlier, today’s higher volume surge got 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 following such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are very overextended on $BTC for today. I would imagine seeing a bit of a retrace where we try to find assistance in the 12.2 12k range. Not saying we cannot run further, but hedged a bit here.”