October 21st Bitcoin (BTC) price crossed the $ 13,000 mark to hit $ 13,217 after traders hit key resistance levels at $ 11,900, $ 12,000 and $ 12,500 for the past 48 hours. While there are several technical reasons for this sudden rally, there are three key factors behind the rally.
The three catalysts are PayPal is a cheap technical structure that enables the purchase of cryptocurrencies and the increasing dominance of Bitcoin.
The PayPal announcement adds momentum to Bitcoin
In the early hours of today PayPal officially announced that it will allow its users to buy and sell cryptocurrencies, including Bitcoin.
Over the past year, speculation continuously intensified via the possible integration of cryptocurrency in PayPal After several messages, it was claimed the company was working to make this possible.
In an official statement Dan Schulman, President and CEO of PayPal, confirmed the integration of the cryptocurrency. Wrote:
“We look forward to working with central banks and regulators around the world to offer our support and make a significant contribution to shaping the role digital currencies will play in the future of world trade and finance.”
After the PayPal announcement Bitcoin’s price rose instantly from around $ 12,300 to an annual high of $ 12,900.
Sui Chung, CEO of CF benchmarks, a subsidiary of the stock exchange Octopus, said that to Cointelegraph The bullish sentiment could return to the crypto market. According to Chung:
“Bitcoin, which hit a 16-month high of $ 13,000 today, shows that this trend is only accelerating. The fact that PayPal, a household name, has received a conditional BitLicense is likely to fuel the optimistic mood. Today is an important indicator of further price spikes in the future … the point where mainstream media and private family business investors could soon show interest in the asset as they did. End of 2017 “.
Bitcoin dominance is increasing
Last week, Bitcoin outperformed Altcoins, DeFi tokens (decentralized finance) and Ethereum.
Josh Olszewicz, A technical analyst for cryptocurrency said so BTC’s dominance is above a major moving average. Technically, this suggests that bitcoin may continue to outperform altcoins in the short term. Olszewicz said:
“For the first time since May, BTC dominance is back above the 200-day moving average. King Corn is back.”
Bitcoin shows a bullish structure over longer periods of time
Dealers identified themselves in October a favorable technical structure of Bitcoin on the longer time frame.
In particular, the weekly Bitcoin chart, shows a breakout and how the previous local high reached in mid-August was broken.
Two months ago BTC hit $ 12,468 on Binance, which is below $ 10,000. As mentioned above, today’s increase in volume has driven the price to a new annual high of USD 13,217, this is well above the previous local maximum.
Short term lTraders expect the market to cool down after such a strong move. Flood, a pseudonymous cryptocurrency futures trader, He said::
“I think we are pretty overwhelmed at BTC right now. I can imagine that we will see some kind of retreat where we will try to find support in the $ 12,200-12,000 range. I’m not saying we don’t can go further, but we can cover a bit here. ” .