Bitcoin price has surged +8% over the last 24 hours, as $12,000 levels were breached. In addition to the US Dollar continuing to show weakness, BTC is also rallying on PayPal developments that surfaced this morning. With Bitcoin surpassing a key 2 year resistance level, what price levels should be on watch?
At the time of this reporting, Bitcoin price is currently hovering around $12,837. The last 24 hours have been exciting for BTC investors as the largest crypto by market cap has surged +8%. Over the last week, BTC has now seen +12% growth, with market dominance rising to a new monthly high at 61%.
US Dollar Weakness
Over the last few weeks, the US Dollar has continued to show weakness as the Whitehouse gets closer to additional stimulus. It has been noted that a falling dollar has historically been bullish for Bitcoins price. We can see that the inverse correlation has continued to fuel BTC. If we go back and assess years worth of data, big price moves in BTC have come in connection with big moves in the USD. We can even see the inverse relations on just the 1 year chart alone.
PayPal Going Crypto
This morning it was announced that PayPal planned to launch new services that gives users the ability to buy, sell, and hold cryptocurrency. Users will be able to leverage cryptocurrency as a funding source at 26 million different merchants. Through the PayPal digital wallet, users can convert cryptocurrency balances to fiat currency when making a purchase. In the next couple weeks, United States users will be able to manage Bitcoin, Ethereum, Bitcoin Cash and Litecoin in the wallet. Despite PayPal not letting users transfer crypto in/out of PayPal, investors still saw it as a massive announcement. In terms of avenues to aid mass adoption on the retail side, this has arguably been one of the biggest announcements in a while.
Bitcoin Technical Analysis
Bitcoin price recently surpassed a long term resistance level at $12,450. With the 2 year resistance breaking, FOMO is now starting to pour into the market. $12,450 now becomes a key support level to keep on watch.
As long as $12,450 can hold, many are arguing that Bitcoin could be building up enough momentum to test $15,800 resistance before year end. With increasing FOMO entering the market, $12,450 will be a key level. If Bitcoins price rejects this support, you could start to see profit taking in the short term. From a risk standpoint, many traders will be putting stop losses around that region. The bullish momentum is still strong though with ROC ( rate of change ) signaling strong bullish momentum right now. ROC is outlined at the bottom of the chart and is considered positive momentum when this indicator is greater than 0.
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