Bitcoin price (BTCUSD) is up by 0.33% as investors remain optimistic about the digital currency. It is trading at $13,091, which is a few points below last week’s high of $13,363. Other digital currencies are also rising, with Ethereum, Tether, and Ripple trading at $406, $1.00, and $0.25.
There are three reasons why Bitcoin price is soaring today. First, investors are still optimistic in the digital currencies industry after PayPal started allowing crypto transactions last week. According to Bloomberg, the company is also considering making more acquisitions of companies in the blockchain industry like BitGo.
PayPal is not the only big company to sound optimistic about Bitcoin. Square, one of the fastest fintech company has been offering Bitcoin in the past few years. And recently, the company bought Bitcoin worth $50 million in a sign of confidence in the industry. Similarly, a tech company known as MicroStrategy has bought BTC worth more than $250 million.
Second, Bitcoin price is rising because of the overall weaker US dollar. While the US dollar index has risen by 0.20% today, it has been in a downward trend this month. In the past 30 days, the index has fallen from a high of $94.5 to a low of $92.50. The US dollar usually has a negative correlation with Bitcoin and other dollar-traded assets like crypto and precious metals.
Third, Bitcoin is rising as Wall Street continues being optimistic about the currency. The latest Wall Street bank to sound optimistic about the currency is JP Morgan. In its report, it cited three reasons for its change of tune. First, it expects Bitcoin to compete aggressively with gold. Second, the bank said that Bitcoin has a high utility and finally, it cited millennials optimism about the currency. The report said:
“The potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.”
Bitcoin price technical outlook
On the four-hour chart, we see that Bitcoin price has been consolidating recently. While doing this, the price has formed a bullish flag pattern that is shown in purple. It has also moved slightly above the support level of this flag. The price is also slightly above the 15-day and 25-day exponential moving averages.
Therefore, the price is likely to continue rising, as bulls aim for the next resistance level at $13,363. A move above this resistance will see the price continue rising as bulls aim for $15,000. In this case, a break below the ascending support will invalidate this trend.