Bitcoin has once again updated the maximum since January 2018. At one moment, its price exceeded $16.5K. Analysts are at a loss. In two weeks, BTC gained 20%. Such explosive growth is usually accompanied by a strong correction. Analysts have been warning about this for a long time. But there is no correction.
In two months, the first cryptocurrency has risen in price by 68%, and in total since the beginning of the year, by 130%. Bitcoin Dominance is constantly growing. Now it is 65.2%. This indicator shows the share of BTC in the cryptocurrency market. Most opinions agree that bitcoin received a new impetus for growth from PayPal. Earlier, a message from the payment system about the launch of a wallet for cryptocurrencies has already pushed the crypto market to grow. Then it was stated about plans to launch a multicurrency wallet in PayPal for bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Now the service has reported that the wallet has launched for American users. However, only BTC and LTС, one of the first bitcoin forks, have grown significantly. Until the end of the year, for the promotion, PayPal does not take a fee for buying/selling cryptocurrencies. Starting in 2021, PayPal promises to provide customers with the possibility to pay with cryptocurrency at 26 million points of sale. This loudly voiced step in fact does not bring any positive to the cryptomarket, because payment will not be made directly with cryptocurrencies, but after they are converted into dollars. It is not yet known what the conversion rate will be, so here, too, “the devil is in the details.”
As for the forecasts for further growth in the BTC, new warnings about an imminent correction are stated. Technical analysis data says that Bitcoin is rising after breaking the $16K resistance level. But its growth is limited by the next level, $16.5K. BTC will be traded in this corridor in the near future. This is the opinion, in particular, of the NewsBTC author Aayush Jindal. If nevertheless, the bitcoin manages to break up through the $16.5K level, then its growth will stop at $16.8K, the tech analyst believes. According to his calculations, in case of BTC correction, it can drop first to $16.2K, and then to $15.5K.
Further growth of the first cryptocurrency is supported by the fact that the trading volume is constantly growing. During the month, the weekly trading volume increased by 270%. And this is without derivatives. Bitcoin futures on the CME Chicago Exchange are also growing, with large investors opening long positions. Taking this into account, a new optimistic scenario is announced: after the price of $16K, the next resistance level is $20K. But the correction after the all-time high of 2017 will be repeated – could be even stronger, up to $14K.