The price of Bitcoin has blasted through the stubborn resistance at $12,000 after the online payments platform Paypal announced it was introducing Bitcoin as a payment option. The news has lit up the cryptocurrency market and sees Bitcoin Cash and Litecoin also being accepted.
I said in an article Monday, Bitcoin takes aim at $12,000, that the coin was setting up for a big move. Institutional traders had built their futures positions to record levels according to CFTC data, while implied options volatility was extremely low.
Billionaire crypto enthusiast Mike Novogratz called it the biggest news of the year for the cryptocurrency market, Tweeting:
This PayPal news is the biggest news of the year in crypto. All banks will now be on a race to service crypto. We have crossed the rubicon people. Exciting day.
Paypal is used in over 200 countries and the platform services over 26 million merchants and hundreds of millions of users. The pivot to crypto is a big step towards mass adoption in digital currencies and should see further investment interest in holding Bitcoin.
Bitcoin Technical Outlook
Bitcoin saw a huge move yesterday, with a gain of almost $1,000. The price has moved through two key resistance levels and these will now be support. Traders could go long at the market with a stop below the $12,473 level as some follow-on investment should arrive. The next key resistance is $14k. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Bitcoin Daily Chart
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