Here’s What Traders Expect After Bitcoin Price Hit $ 13,217
The price of Bitcoin has just hit a new annual high and traders expect the price to continue to climb further for 3 key reasons.
On October 21, the price of Bitcoin (BTC) broke the $ 13,000 mark to hit $ 13,217 after traders cleared key resistance levels at $ 11,900, $ 12,000 and $ 12,500 in the past 48 hours. While there are several technical reasons behind this sudden rally, there are three key factors driving the rally.
The three catalysts are a favorable technical structure, PayPal allowing the purchase of cryptocurrencies and the increasing dominance rate of Bitcoin.
PayPal announcement adds to Bitcoin momentum
Earlier today, PayPal officially announced that it will allow its users to buy and sell cryptocurrencies, including Bitcoin. Throughout the past year, speculation about the possible integration of the cryptocurrency into PayPal continuously escalated after various news items claimed that the company was working to make it 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 contribute significantly to shaping the role that digital currencies will play in the future of world commerce and finance.” Following PayPal’s announcement, the price of Bitcoin immediately rose from around $ 12,300 to an annual high of $ 12,900.
Sui Chung, CEO of CF Benchmarks, a subsidiary of the Kraken exchange, told Cointelegraph that bullish sentiment may return to the cryptocurrency market. According to Chung:
“Bitcoin topping $ 13,000 today, a 16-month high, shows that this trend is only accelerating. The fact that PayPal, a household name, has received a conditional BitLicense is likely fueling the bullish sentiment. Today is an important indicator for further price appreciation in the future … the point at which mainstream media and ‘family’ retail investors may soon begin to show interest in the asset, as they did. at the end of 2017 “.
Bitcoin dominance is increasing
Last week, Bitcoin outperformed altcoins, decentralized finance (DeFi) tokens, and Ethereum. Josh Olszewicz, a cryptocurrency technical analyst, said that BTC’s dominance is above a key moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the short term. Olszewicz said: “BTC dominance is back above the 200-day moving average for the first time since May, King Corn is back.”
Bitcoin Shows Bullish Structure On Longer Time Frames
Throughout October, traders have identified a favorable technical structure for Bitcoin on the longer time frames. Data shows that professional traders went short when the price of Bitcoin surpassed $ 12,000. Bitcoin’s weekly chart, in particular, shows a breakout and how it broke past the previous local high reached in mid-August.
Two months ago, BTC hit $ 12,468 on Binance and dipped below $ 10,000. As mentioned above, today’s volume surge pushed the price to a new yearly high of $ 13,217, which is well above the previous local high.
In the short term, traders expect the market to cool down after such a strong move. Flood, a pseudonymous cryptocurrency futures trader, said: “I think we are quite overextended in $ BTC for now. I imagine we will see a bit of a pullback where we will try to find support in the $ 12,200-12,000 range. I’m not saying no. we can go further, but we can cover ourselves a bit here. “
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.