On Thursday, October 22nd, the BTC corrected after the preceding aggressive growth; nonetheless, the market still hopes for a new wave of growth. The coin is generally trading at $12,807 USD.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
- Tech analysis of BTC/USD
- The BTC rate renewed this year’s peak.
- PayPal will start supporting crypto.
On W1, the quotations are developing ascending dynamics and are now bouncing off 61.8% Fibo, which stimulates further growth to the target level of 100.0%. The MACD histogram is positive, giving an additional signal of growth. The signal lines of the indicator keep intertwining in the form of a Black Cross, increasing the chances for further growth. The Stochastic is slowly heading for the overbought area, giving the same signal. Judging by all the factors, after a test of 100.0% Fibo, the pair will correct and go on developing positive dynamics.
On D1, the technical picture is almost identical to that on W1: the pair keeps developing an upward movement. The aim of the growth from the lower border of the channel is $13,800 USD. The MACD histogram is again below zero, hinting at the possibility of further growth. The signal lines of the indicator have formed a Black Cross and go on growing, supporting the growth of the quotations to 100.0% Fibo. The signals of W1 and D1 look similar.
On H4, the growth after a correction looks highly probable. The Stochastic is forming a Black Cross near the overbought area, giving another signal of a probable correction before further growth with the aim at $13,800 USD.
The price of the leading cryptocurrency has recently renewed its year’s high on $12,350 USD. Since the beginning of the year, the rate of the cryptocurrency has grown by 74%, which looks like a perfect result in the unpredictable 2020. Yesterday, the daily trade volume of the BTC increased by 24%, while its part of the market extended to 60%.
Apart from the technical signals that push the price up, the BTC has a mighty fundamental driver for buys. PayPal has announced its readiness to start supporting cryptocurrencies, which will let users buy and sell digital currencies, amplifying the sphere of its use. This is a very important step: such functions inside a popular and friendly payment system will open new pathways for the development of cryptocurrencies and introduce them to real life. The more points of contact cryptocurrencies have with daily life, the better for them.
PayPal is not going to charge any fees for buying and selling operations with cryptocurrencies until December 31st, 2020 or introduce any fees for the storage of digital money.
Further plans look ambitious: in 2021, PayPal will support payments by digital money in more than 26 million Selling spots. Clearly, cryptoassets will need conversion to fiat money but this remains a promising option. New horizons seem to open for the crypto market.
For this article, we’ve used BTCUSD charts by TradingView.
Disclaimer: Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.