Bitcoin (BTC) reached $ 13,000 on October 21 and reached $ 13,217 after traders broke key resistance levels of $ 11,900, $ 12,000 and $ 12,500 in the past 48 hours. While the steep rally is due to various technical reasons, there are three main factors driving the rally.
Three triggers are a favorable technical architecture, PayPal allows to buy cryptocurrencies, and Bitcoin is increasingly dominant.
PayPal’s announcement of the cryptocurrency is adding momentum to BTC
Earlier today, PayPal officially announced that it allows users to buy and sell cryptocurrencies, including Bitcoin.
Over the past year, speculation about PayPal’s potential cryptocurrency integration has intensified after various reports claimed the company was working on it.
In an official statement, Dan Shulman, PayPal’s President and CEO, emphasized the integrity of the cryptocurrency. he wrote:
“We stand ready to work with central banks and regulators around the world to lend our support and make a significant contribution to shaping the role digital currencies will play in the future of global finance and trade.”
Bitcoin’s price instantly jumped from $ 12,300 to $ 12,900, according to a PayPal statement.
Sui Chung, CEO of CF Benchmarks, a subsidiary of the Kraken Exchange, told Cointelegraph that optimistic sentiment is likely to return to the cryptocurrency market. According to Zhang:
“Bitcoin, which crossed $ 13,000 today, the highest in 16 months, shows that the trend is getting stronger. Possibly the fact that PayPal, a popular name, received a conditional BitLicense license driven by an upbeat mood. This is significant as an indication of the price increase. In the future … the point at which the mainstream media and “prime and primary investors” may begin to show their interest in the asset, as they did at the end of 2017.
Bitcoin’s dominance is on the rise
Over the past week, Bitcoin has outpaced alternative cryptocurrencies, Decentralized Funding Tokens (DeFi) and Ethereum.
Josh Olsevich, cryptocurrency technical analyst, said Bitcoin’s dominance is above the important moving average. Technically, this indicates that Bitcoin may continue to outpace altcoins in the short term. Olshevich says:
“Bitcoin is dominating above the 200-day moving average again for the first time since May, the corn of the king is back.”
BTC is showing bullish structure with higher time frames
During the month of October, traders identified a suitable bitcoin technical structure over longer periods of time.
Specifically, Bitcoin’s weekly chart showed a breakout and surpassed the previous domestic peak reached in August.
Two months ago, BTC peaked at $ 12,468 on Binance and continued to fall below $ 10,000. As mentioned earlier, as a result of the massive increase in volume today, the price reached a new 2020 high of $ 13,217, well above the previous local peak.
In the short term, traders expect the market to calm down after this strong rally. Flood, a cryptocurrency futures trader under a pseudonym, said:
“I think at this point we have expanded considerably using $ BTC. I can imagine seeing a small pathway as we try to find support in the 12.2K-12K series a little bit here.”