Bitcoin Explosion: Can It Last?
Naeem Aslam | Oct 22, 2020 05:33AM ET
Bitcoin price made a yearly high yesterday. Crypto enthusiasts went wild, which resulted in Bitcoin's price explosion. It is important to not let things get out of control, and the reason I am saying that is because the upward momentum in the Bitcoin price wasn't anything more than a mere pump, which pushed the price up by nearly $1300.
Bitcoin is the kind of beast that can move more than $4000 a day, and this is what we were expecting yesterday. Yes, PayPal (NASDAQ:PYPL) accepting Bitcoin as a form of payment is the most important development, and it is the biggest news since the crypto king made an all-time high of $20,000. This was always going to happen—PayPal accepting cryptos.
However, if you think that this will change regulators' stance any time soon, you may be setting yourself up for a surprise. These things do not move that fast; regulators will not allow cryptos to replace fiat currencies.
Having said that, if PayPal continues to support Bitcoin as a form of payment, it will help the crypto community to grow because now they can use their digital assets for actual products.
In terms of price action, the Bitcoin price needs to stay above the 12623 price level for this upward momentum to continue. Looking at the price action, it does seem like that the price has exhausted, or at least the bulls are out of steam for now. If the price breaks below the above support level, then the next area where we could see some more buying pressure is 12271.
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