Bitcoin price just secured a new 2020 high and traders count on the cost to climb higher for 3 key factors.

On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out critical resistance levels during $11,900, $12,000, and $12,500 during the last 48 hours. While generally there are actually different specialized causes behind the abrupt upsurge, you will find 3 key factors buoying the rally.

The three catalysts are actually a favorable specialized framework, PayPal enabling cryptocurrency purchases, and Bitcoin‘s rising dominance fee.

Earlier now, PayPal officially announced it’s allowing users to purchase and sell cryptocurrencies, including Bitcoin.

Over the older year, speculations on PayPal’s likely cryptocurrency integration constantly intensified after various reports claimed the company was working hard on it.

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

“We are eager to work with central banks as well as regulators around the world to give the support of ours, as well as to meaningfully add to shaping the job that digital currencies will play in the future of global finance and commerce.”

Following PayPal’s statement, the  price  of Bitcoin immediately rose through approximately $12,300 to all the way to $12,900.

Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is actually likely returning to the crypto market. According to Chung:

“Bitcoin passing $13,000 nowadays, a 16-month high, demonstrates that this pattern is only picking up pace. That PayPal, a household name, has gotten a conditional BitLicense is actually very likely propelling bullish sentiment. Today is substantial as a signpost for even more cost appreciation in the future… the stage by that mainstream press and’ mom & pop’ retail investors might eventually start to show fascination in the asset, because they did within late 2017.”
Bitcoin dominance is rising In the past week, Bitcoin has outperformed substitute cryptocurrencies, decentralized finance (DeFi) tokens, and also Ethereum.

The dominance of Bitcoin. Source: Josh Olszewicz
Josh Olszewicz, a cryptocurrency specialized analyst, stated the dominance of BTC is actually above a critical moving average. Technically, this suggests that Bitcoin could go on to outperform altcoins inside the near term. Olszewicz said:

“BTC dominance returned higher than the 200-day moving average for the very first time since May, king corn is actually back.”
BTC shows a bullish high time frame system Throughout October, traders have pinpointed the advantageous specialized structure of Bitcoin on the more expensive time frames.

Bitcoin’s weekly chart, in particular, has shown a breakout and surpassed the previous local top achieved in August.

BTC/USD weekly chart. BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As said before earlier, today’s high volume surge got the price to a brand new 2020 high at $13,217, which is well above the prior local top.

In the short-term, traders anticipate that the market will cool down right after such a strong rally. Flood, a pseudonymous crypto futures trader, said:

“I believe we are extremely overextended on $BTC for right now. I would imagine experiencing a tad of a retrace where by we make an effort to find support in the 12.2-12k range. Not saying we cannot run further, but hedged a bit here.”