Bitcoin price just secured a fresh 2020 increased and traders count on the price to rise higher for three key reasons.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to attain $13,217 following traders took out critical resistance levels at $11,900, $12,000, as well as $12,500 during the last 48-hours. While there are actually various specialized causes behind the abrupt upsurge, you will find three factors that are key buoying the rally.
Earlier these days, PayPal officially announced it is allowing users to buy as well as sell cryptocurrencies, including Bitcoin.
During the entire past season, speculations on PayPal’s potential 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, confirmed the cryptocurrency integration. He wrote:
“We are eager to work with central banks as well as regulators all over the world to offer our assistance, as well as to meaningfully contribute to shaping the role that digital currencies will perform 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 actually likely going back to the crypto market. 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 family name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is actually substantial as a signpost for more cost appreciation inside the future… the stage by that mainstream mass media and’ mom & pop’ retail investors might possibly eventually begin to show fascination in the asset, since they did in late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed substitute cryptocurrencies, decentralized financing (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 critical moving average. Technically, this implies that Bitcoin might continue to outperform altcoins within the near term. Olszewicz said:
“BTC dominance back above the 200 day moving average for the first time since May, king corn is back.”
BTC shows a bullish high time frame system 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 area top achieved in August.
BTC/USD weekly chart. BTC topped out from $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, and that is well above the earlier neighborhood top.
In the short-term, traders anticipate that the market will cool down soon after such a good rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are quite overextended on $BTC for right now. I’d imagine seeing a tad of a retrace in which we try to find assistance in the 12.2 12k range. Not saying we can’t run further, but hedged a bit here.”