Bitcoin price (BTCUSD) is little changed today as traders refocus on tomorrow’s futures expiry. The price is trading at $13,285, which is a few points below the resistance level of $14,000. Other digital currencies are mixed, with Ethereum down by 3.50% and Ripple up by 0.40%.
Bitcoin has been in a strong rally. The price has jumped by more than 25% this month, making it the best-performance since June. There are several reasons why Bitcoin price has been rising this month.
First, PayPal, a company with more than 300 million users announced that it would start accepting digital currencies. Also, media reports suggested that the company was considering making several cryptocurrency acquisitions in a sign of validation for the industry.
Second, Bitcoin price rose because of positive statements from banks like JP Morgan and Goldman Sachs, who expressed support for the currency. They also reacted to news that Square had invested more than $50 million in Bitcoin. Therefore, we can conclude that October was the month of Bitcoin validation.
Third, Bitcoin rose as traders moved to risk assets as the number of Covid-19 cases continued to rise in the Western world.
The next focus among traders will be in the futures market. More than 62,000 Bitcoin options that are now worth more than $450 million will expire tomorrow. Most of these options are held at the CME with others held at OKEX and Deribit. In the past, we have seen significant actions ahead and after options expire.
Bitcoin price technical outlook
On the daily chart, we see that Bitcoin has been in a strong upward trend after it declined to below $4000 in March. Most of these gains have happened in October. The price remains above the 50-day and 100-day exponential moving averages. Also, the price is forming a bullish consolidation pattern near the $14,000 level.
Therefore, I suspect that Bitcoin price will continue rising as bulls attempt to test the resistance at $15,000. On the flip side, a move below $13,000 will invalidate this trend because it will be an indication that there are still sellers in the market.
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Bitcoin price technical chart
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