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Crypto Weekly: Bitcoin Rises And Set Yearly High Due PayPal News

The price of Bitcoin has increased significantly in value over the past week — from $11,500 to $13,050. Bitcoin set its maximum yearly price yesterday, October 25th, at $13,350 and in just a week, the first cryptocurrency grew by 15%.

This rapid growth was due to the biggest news of the week from PayPal. The company announced that it will add the ability to buy cryptocurrencies on its site in the coming weeks. Their blog mentions Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Initially, only US residents will have access to such an opportunity, and this initiative will spread to the whole world in 2021.

PayPal users will be able to pay for goods and services in cryptocurrency in tens of millions of stores around the world. At the same time, shops do not need to create cryptocurrency wallets, since when making a purchase, the cryptocurrency will be converted to fiat. For this, PayPal will use the services of Paxos.

It also became known that the payment giant is negotiating the purchase of various cryptocurrency companies. The first target will be the custodian service BitGo. Against this backdrop, Bitcoin set an annual high, and PayPal’s share price soared, which led to an all-time high of $215.

Against the backdrop of such a leap in Bitcoin, Tether has prepared 450 million USDT for market launch. The issue will be carried out on the Tron blockchain. Paolo Ardoino, CTO, stated that this is not a new release, but only preparation for additional demand from investors and users.

As a reminder, the USDT and Bitfinex litigation has been going on since 2017 and is connected with the possible impact of the uncontrolled emission of USDT on the Bitcoin price. The case has recently been revisited by the US Attorney’s Office, which has launched a new investigation.

The increased attention of US government agencies on exchanges is starting to have an effect. As a result, BitMEX announced mandatory verification until November 5th, 2020. If traders do not do this, then they will not be able to trade on this exchange and will not be able to withdraw their assets after December 4th, 2020.

The BitMEX example was followed by the largest options crypto exchange, Deribit. The team of the company announced that all users will be required to undergo mandatory verification by the end of 2020. Deribit‌ ‌said‌ ‌that‌ ‌this‌ ‌was‌ ‌due‌ ‌to‌ ‌recent‌ ‌changes‌ ‌in‌ ‌the‌ ‌regulatory‌ ‌and‌ ‌legal‌ ‌environment.‌ ‌Obviously,‌ ‌the‌ ‌exchange‌ ‌wants‌ ‌to‌ ‌avoid‌ ‌the‌ ‌fate‌ ‌of‌ ‌BitMEX‌ ‌and‌ ‌Bitfinex.‌

Bitcoin

Most of Bitcoin’s growth (~ 8%) came on October 22nd, when the news about PayPal was published in the media. At the same time, we can see a significant jump in buy volumes. This is clearly seen on the chart as indicated at the arrow. After that, the trading volumes again decreased to the previous values. This suggests that the growth was purely informational.

Currently, the price is consolidating at around $13,000. There is very little left to break through last year’s high of $13,970 — about 7%. However, judging by the indicators, this may not happen.

Stochastic and RSI have been in the overbought zone for a long time. MACD is showing signs of a reversal. Bollinger Bands also indicate that there should be a correction now.

Most likely, the price can consolidate for some time near $13,000 with a further fall in the range of $11,600 — $12,000.

There has been a lot of positive news in recent weeks, but all of them have already been won back. Therefore, we are confident that the next major move will be the decline in the price of Bitcoin.

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