- Bitcoin amasses traction and hits a new 2020 high of $13,217
- Traders point to three factors responsible for Bitcoin’s recent price rally
- PayPal now allows users to buy and sell digital currencies, including Bitcoin
Bitcoin News Today – Bitcoin recently amassed enough bullish traction and soared to a new yearly high and traders are expecting it to continue surging higher for three major reasons. Yesterday, the price of bitcoins surged significantly and broke over the $13,000 mark. Bitcoin reached a high of $13,217 after traders took out major hurdle points at $11,900, $12k, and $12,500 in the last two days.
While there are several technical reasons behind the massive upsurge, there are three major factors responsible for the rally. Those three factors are the increasing dominance rate of Bitcoin, a favorable technical structure, and PayPal enabling digital currency purchases.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Gained Momentum from the Crypto Announcement of PayPal
On October 21, PayPal announced that it is enabling digital currency purchases, which means users can buy and sell digital currencies, including Bitcoin. Over the past year, speculations of the potential digital currency integration of PayPal continuously intensified after reports claimed that the firm was working on it.
In a statement, the CEO and President of PayPal – Dan Schulman – confirmed the digital currency integration. He said:
“We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
Before the announcement, Bitcoin was trading around the $12,300 range, but it surged to as high as $12,900 after the announcement.
Bitcoin’s Dominance is on the Rise
The performance of Bitcoin over the past few days has been impressive. The digital currency has outperformed decentralized finance (DeFi), altcoins, and even Ethereum. A digital currency technical analyst – Josh Olszewicz – said Bitcoin’s dominance is over a major moving average. This means BTC could continue to outperform alternative cryptocurrencies in the near term. He said:
“BTC dominance back above the 200-day moving average for the first time since May, king corn is back.”
Technical Timeframes are Favoring Bitcoin
Since the beginning of this month, traders have been pointing to the favorable technical structure of Bitcoin on the higher timeframes. The weekly chart of the digital currency has shown a breakout and surged over the previous local top achieved in August. Two months ago, Bitcoin surged to the high of $12,468 on Binance and later plunged to below $10k.
The massive upsurge in the price of the digital currency yesterday took it to a new year-to-date high of $13,217, which is well over the previous local top. Nevertheless, traders are expecting the market to calm down after such a strong rally in the near term.