Bitcoin price just secured a fresh 2020 high and traders count on the cost to climb higher for three important factors.
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 within the last 48-hours. While there are actually various specialized causes driving the abrupt upsurge, you’ll find three important factors buoying the rally.
Earlier now, PayPal officially announced it’s allowing users to buy and sell cryptocurrencies, like Bitcoin.
Over the previous season, speculations on PayPal’s possible 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, confirmed the cryptocurrency integration. He wrote:
“We are desperate to work with central banks as well as regulators all over the world to give our support, and also 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 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 household name, has gotten a conditional BitLicense is actually likely propelling bullish sentiment. Today is significant as a signpost for further cost appreciation in the future… the point by which mainstream press and’ mom and pop’ list investors might possibly soon start to show interest in the asset, because they did inside late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed alternative cryptocurrencies, decentralized financial (DeFi) tokens, and Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, mentioned the dominance of BTC is actually above a crucial moving average. Technically, this suggests that Bitcoin might go on to outperform altcoins within the near term. Olszewicz said:
“BTC dominance returned above the 200-day moving average for the very first time since May, king corn is back.”
BTC shows a bullish higher time frame system Throughout October, traders have pinpointed the favorable technical structure of Bitcoin on the more expensive time frames.
Bitcoin’s weekly chart, for example, has shown a breakout plus surpassed the previous area top attained in August.
BTC/USD weekly chart. BTC topped out at $12,468 on Binance and then proceeded to fall under $10,000. As mentioned earlier, today’s higher volume surge got the price to a brand new 2020 very high at $13,217, which is well above the previous neighborhood top.
In the short term, traders foresee that the industry will cool down soon after such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are really overextended on $BTC for right now. I would imagine getting a bit of a retrace where by we attempt to find support in the 12.2 12k range. Not saying we can’t run further, but hedged a tad here.”