Bitcoin price just secured a fresh 2020 high and traders expect the cost to increase higher for 3 key factors.
On Oct. twenty one Bitcoin (BTC) price overtook the $13K mark to reach $13,217 following traders took out critical resistance levels during $11,900, $12,000, and $12,500 during the last 48 hours. While there are actually many specialized reasons driving the abrupt upsurge, you’ll find three factors which are key buoying the rally.
Earlier now, PayPal officially announced it is allowing users to buy as well as sell cryptocurrencies, like Bitcoin.
During the entire past year, speculations on PayPal’s potential cryptocurrency integration constantly intensified after various reports claimed the business was working on it.
In an official declaration, 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 our support, and also to meaningfully contribute to shaping the task that digital currencies will have fun with in the future of worldwide finance and commerce.”
Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is likely returning to the crypto sector. According to Chung:
“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates this pattern is just picking up speed. That PayPal, a house name, has gotten a conditional BitLicense is likely propelling bullish sentiment. Today is considerable as a signpost for further price appreciation within the future… the place by which mainstream mass media and’ mom & pop’ retail investors might soon begin to show interest in the asset, because they did within late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized financing (DeFi) tokens, and also Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency technical analyst, said the dominance of BTC is above a key moving average. Technically, this hints that Bitcoin could will begin to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back over 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 favorable technical framework of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has proven a breakout plus surpassed the previous local top attained in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As stated previously, today’s higher volume surge got the cost to a brand new 2020 high at $13,217, which is well above the earlier neighborhood top.
In the short-term, traders foresee that the industry will cool down following such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we’re really overextended on $BTC for today. I’d imagine seeing a tad of a retrace where we attempt to find support in the 12.2 12k range. Not saying we cannot run more, but hedged a tad here.”