The three catalysts are a favorable technical structure, PayPal enabling cryptocurrency purchases, and Bitcoin’s rising dominance rate.
PayPal’s crypto announcement adds to BTC’s momentum
Earlier today, PayPal officially announced that it is allowing users to buy and sell cryptocurrencies, including Bitcoin. In an official statement, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote: “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.”
Following PayPal’s statement, the price of Bitcoin immediately rose from around $12,300 to as high as $12,900.
Bitcoin dominance is rising
In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, and Ethereum. Josh Olszewicz, a cryptocurrency technical analyst, said the dominance of BTC is above a key moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the near term.
BTC shows a bullish high time frame structure
Throughout October, traders have pinpointed the favorable technical structure of Bitcoin on the higher time frames. Bitcoin’s weekly chart, in particular, has shown a breakout and surpassed the previous local top achieved in August. Two months ago, BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As mentioned earlier, today’s high volume surge took the price to a new 2020 high at $13,217, which is well above the previous local top.