Bitcoin price simply secured a fresh 2020 increased and traders count on the cost to rise higher for 3 key factors.
On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to achieve $13,217 after traders took out critical resistance levels during $11,900, $12,000, and $12,500 in the last 48-hours. While generally there are various technical reasons powering the abrupt upsurge, there are three key factors buoying the rally.
Earlier these days, PayPal officially announced that it is allowing users to buy and sell cryptocurrencies, including Bitcoin.
Over the older season, speculations on PayPal’s possible cryptocurrency integration continuously intensified after numerous reports claimed the business was doing work on it.
In an official declaration, CEO, the president, and Dan Schulman of PayPal, confirmed the cryptocurrency integration. He wrote:
“We are wanting to work with central banks and regulators all over the world to offer our support, and also to meaningfully contribute to shaping the job that digital currencies will play in the future of global finance and 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 nowadays, a 16 month high, demonstrates this pattern is just picking up pace. That PayPal, a house name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is considerable as a signpost for further cost appreciation within the future… the stage by that mainstream media and’ mom & pop’ list investors might possibly eventually begin to show interest in the asset, as they did in late 2017.”
Bitcoin dominance is rising In the previous week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, as well as Ethereum.
The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, said the dominance of BTC is above a crucial moving average. Technically, this implies that Bitcoin can continue to outperform altcoins within the near term. Olszewicz said:
“BTC dominance returned over the 200-day moving average for the first time since May, king corn is actually back.”
BTC shows a bullish higher time frame system Throughout October, traders have pinpointed the favorable specialized framework of Bitcoin on the bigger time frames.
Bitcoin’s weekly chart, for example, has shown a breakout plus surpassed the earlier area top attained in August.
BTC/USD weekly chart. BTC topped out from $12,468 on Binance and proceeded to fall below $10,000. As said before earlier, today’s high volume surge took the cost to a new 2020 very high at $13,217, and that is well above the previous neighborhood top.
In the short term, traders anticipate that the market will cool down after such a reliable rally. Flood, a pseudonymous crypto futures trader, said:
“I feel we are really overextended on $BTC for today. I’d imagine getting a tad of a retrace in which we try and find support in the 12.2-12k range. Not saying we can’t run more, but hedged a tad here.”