Bitcoin settle above $13,000 to record the highest level in 2020

Mohammed Abdelkhalik
October 22, 2020

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BTCUSD Outlook – 22nd October 2020

During the past few days, the Bitcoin showed successive bullish momentum that made it jump high, breaching the $12,000 resistance level, to culminate today on some positive news coming from PayPal, the largest online payment processor in the world, setting a new record for this year at $12,800.

With Bitcoin approaching the $ 13,000 region, the cryptocurrency remained above $ 10,000 for 87 days in a row, meaning a 62-day break in 2017.

BTC/USD Outlook - 22nd October 2020

The dominance of the world’s leading cryptocurrency on the market has increased dramatically over the past few days, which now stands at 61.%, up 3% from last month, and the total market value of digital currencies increased by 5.6%, hovering above $ 379 billion.

Poor quarterly performance

The end of the third quarter was not great for bitcoin traders, Pepperstone, but this was expected because September was not a profitable month, and throughout the entire month of September the price of Bitcoin was somewhat stagnant with some minor exceptions, this became a reason for growing concerns among cryptocurrency analysts and traders, and many Of them they were worried that the price would go down.

All this changed on October 6th when the currency started to take a bullish curve, since then the price has risen by more than $ 2000 with momentum reaching its highest levels today following the major news from PayPal.

PayPal supports Bitcoin

The largest online payment processor in the world, PayPal, announced that it will enable its customers to buy, sell and store bitcoin and other cryptocurrencies as soon as the “next weeks” for accounts in the United States and the first half of 2021 for other countries, and PayPal is the largest independent financial advisory institution. And financial technology in the world.

The company said that it works with central banks and is considering all forms of digital currencies and PayPal can play a role, and the CEO hopes that this service will encourage more use of virtual currencies as well as preparing its network for central bank digital currencies (CBDCs).

Analysts say that this is a major and important step forward towards the mass adoption of digital currencies, and the rapid pace of digitization of economies and every aspect of our lives, including financial life, shows that there will be an increasing demand for digital and global money without limits, characteristics inherent to the likes of Bitcoin.

Analysts believe that the current trend is the beginning of a new upside cycle for the leading cryptocurrency bearing in mind that the currency has quickly recovered from recent negative news including BitMEX fees and OKEx stock inquiries, and the tense economic situation will lead to the bitcoin price spiking to the highest levels.

At the same time, the traditional financial markets are expected to suffer from an increase in cases of Coronavirus, with the entry of the second wave in many countries of the world.

Four factors believed to drive the markets are the increasing spread of the Coronavirus, the second stimulus agreement proposed by the US administration, the policy of the Federal Reserve, and the US presidential elections.

Unknown developments in the disputed elections may lead to a chaotic outcome, leading to more concerns among investors, such conditions may lead to a sharp drop in prices among traditional financial assets, and Bitcoin may appear to be the winner.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.