This “bombshell” I am referring to is the announcement by PayPal earlier today that in just a few weeks they will allow users the ability to hold and exchange cryptocurrencies in their digital wallets. This news is a gigantic leap for the adoption of Bitcoin as well as Bitcoin Cash, Ethereum, and Litecoin which will also be supported. This rollout is said to start over the next few weeks and allow for U.S. customers to make purchases with crypto sometime early next year.
This news propelled BTC past its area of resistance that served as a ceiling for almost two years to levels not seen since July 2019. This is a gamechanger as it brought the digital asset past its last real technical hurdle until nearly $14,000.
So, to traders the question becomes is this going to hold and where is it headed from here? The simple fact that this move was based on an announcement revealing that adoption of Bitcoin as a means of a global, widespread, and mainstream form of payment means it is not only a short term shot in the arm for Bitcoin but one that will have lasting implications as well.
As such I would recommend traders to enter from the long side and place protective stops at $12,600 this stop is rather tight as I believe Bitcoin will do one of two things, either continue flying higher or retrace back below the $12,600 resistance level with the ladder of the two is unlikely in my eyes.