Bitcoin price reached $13,000 in the last days on investors’ renewed enthusiasm about cryptocurrencies. On its way to the upside, it broke horizontal resistance at $12k and now faces its toughest exam in more than a year – the $14k level.
Suddenly, everyone and their mothers are bullish on Bitcoin. The news that ignited the sudden interest came from PayPal. The online payment company announced that it will allow its US customers to use cryptocurrencies to pay for goods – a signal of strong adoption of cryptocurrencies by public companies.
Moreover, PayPal’s CEO Dan Schulman said that the shift to cryptocurrencies is inevitable. Furthermore, Paul Tudor Jones, a big investor in Bitcoin, expressed its conviction that this is just the start of a strong, bullish move.
PayPal announced this week that it would allow its US customers to buy, hold, and sell cryptocurrencies. More precisely, it supports four cryptocurrencies – Bitcoin, Bitcoin cash, Litecoin, and Ethereum.
So far, PayPal obtained a “Bitlicense” from the New York State Department of Financial Services and will operate in close cooperation with the fintech company Paxos until the full license is granted.
Bitcoin Price Technical Analysis
While the PayPal news is bullish as it suggests cryptocurrencies adoption (i.e., PayPal has over 25 million merchants under its umbrella), the technical picture calls for caution at these levels. Now that the Bitcoin price reached the $13k mark, the focus shifts to $14k – the big level to break.
Only that this is the area where sellers stepped in a while ago. More exactly, this is the area from where the Bitcoin price was knocked down before all the way to the $4,000 level.
Bulls should stay involved on the long side as long as the series of higher lows and higher highs continue. But bears may try timidly to sell against dynamic and horizontal resistance, for a move back to the lower edge of the rising channel. To do so, selling between $13.3k-$13.6k with a stop loss at $14.6 and a take profit at $10.5k provides a good risk-reward ratio.