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Here’s what traders expect after Bitcoin price rallied to $13,217

Here’s what traders expect after Bitcoin price rallied to $13,217

On Oct. 21 Bitcoin (BTC) value overtook the $13Ok mark to succeed in $13,217 after merchants took out key resistance ranges at $11,900, $12,000, and $12,500 within the final 48-hours. Whereas there are numerous technical causes behind the abrupt upsurge, there are three key components buoying the rally.

The three catalysts are a good technical construction, PayPal enabling cryptocurrency purchases, and Bitcoin’s rising dominance price.

PayPal’s crypto announcement provides to BTC’s momentum

Earlier in the present day, PayPal formally introduced that it’s permitting customers to purchase and promote cryptocurrencies, together with Bitcoin.

All through the previous yr, speculations on PayPal’s potential cryptocurrency integration repeatedly intensified after varied experiences claimed the corporate was engaged on it.

In an official assertion, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote:

“We’re wanting to work with central banks and regulators all over the world to supply our assist, and to meaningfully contribute to shaping the position that digital currencies will play in the way forward for world finance and commerce.”

Following PayPal’s assertion, the value of Bitcoin instantly rose from round $12,300 to as excessive as $12,900.

Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken alternate, advised Cointelegraph that bullish sentiment is probably going returning to the crypto market. In accordance with Chung:

“Bitcoin passing $13,000 in the present day, a 16-month excessive, demonstrates that this pattern is simply selecting up tempo. That PayPal, a family title, has acquired a conditional BitLicense is probably going propelling bullish sentiment. Right this moment is critical as a signpost for additional value appreciation sooner or later… the purpose by which mainstream media and ‘mother and pop’ retail buyers might quickly begin to present curiosity within the asset, as they did in late 2017.”

Bitcoin dominance is rising

Up to now week, Bitcoin has outperformed various cryptocurrencies, decentralized finance (DeFi) tokens, and Ethereum.

The dominance of Bitcoin. Supply: Josh Olszewicz

Josh Olszewicz, a cryptocurrency technical analyst, stated the dominance of BTC is above a key shifting common. Technically, this means that Bitcoin may proceed to outperform altcoins within the close to time period. Olszewicz stated:

“BTC dominance again above the 200-day shifting common for the primary time since Might, king corn is again.”

BTC reveals a bullish excessive time-frame construction

All through October, merchants have pinpointed the favorable technical construction of Bitcoin on the upper time frames.

Bitcoin’s weekly chart, particularly, has proven a breakout and surpassed the earlier native high achieved in August.

BTC/USD weekly chart. Supply: TradingView.com

Two months in the past, BTC topped out at $12,468 on Binance and proceeded to fall beneath $10,000. As talked about earlier, in the present day’s excessive quantity surge took the value to a brand new 2020 excessive at $13,217, which is properly above the earlier native high.

Within the short-term, merchants anticipate that the market will quiet down after such a robust rally. Flood, a pseudonymous crypto futures dealer, stated:

“I believe we’re fairly overextended on $BTC for now. I might think about seeing a little bit of a retrace the place we attempt to discover assist within the 12.2-12okay vary. Not saying we won’t run additional, however hedged a bit right here.”