Bitcoin’s bull run hits the bull’s eye
As you know we recommended trader’s initiate long positions last Wednesday, October 21st after the announcement by PayPal that they will be allowing users to store and exchange Bitcoin and three other cryptocurrencies in just a few weeks. Essentially PayPal accounts including their exceedingly popular payment and money transfer application Venmo for which no bank account is required can be used as Bitcoin wallets to store digital assets. This is great news for Bitcoin because now holders and users of Bitcoin have a hugely reputable company to store their digital assets. In early 2021 users in the United States will be able to send and receive Bitcoin for transactions.
This news led to a spike in pricing closing above a major resistance level at $12,600 that had served as an unbreachable ceiling for over a year (15 months). Many crypto market analysts and professional traders were quoted as stating that to enter the market after the PayPal announcement on Wednesday was unwise until a re-test of the $12,500 level.
David Gerard, author of Attack of the 50 Foot Blockchain and the forthcoming Libra Shrugged: How Facebook Tried to Take Over the Money, said PayPal was describing "a crypto day-trading market".
"I'm at a loss as to who the market is for PayPal as a crypto-exchange," He likened it to playing the stock market, but with Bitcoin - whose volatile and less well-regulated nature was like "gambling on penny stocks".
I did not agree with this assessment and many others just like it. One of the reasons was that PayPal’s user base is bigger and more wisely trusted than other forms of wiring money inside and between borders of the approximately 200 countries it serves. Even more telling was the fact that this news propelled PayPal to its all-time record high, clearly illustrating the sentiment for Bitcoins continued growth and adoption by corporations, institutions, traders, and everyday people. I believe this trend will continue and thus Bitcoin’s price will continue its path to higher pricing. But as for today BTC has hit our short-term target of its 61.8% retracement from all-time record highs.