Bitcoin is currently in the throes of a strong uptrend that has allowed it to recapture all of the gains that were lost following its decline from $12,400 seen in late-August.
The cryptocurrency set fresh yearly highs today when it rallied up to $12,500 – a level that is now acting as resistance.
Whether or not it continues pushing higher in the near-term will likely depend largely on whether or not bulls can continue expanding upon the momentum that has been built over the past few days.
Unlike previous rallies past $12,000, Bitcoin is currently being driven higher by “fomo” resulting from multiple bullish fundamental developments.
Today, PayPal announced that they will be adding support for Bitcoin, Ethereum, and a few other digital assets. This means that users can use the popular platform to buy, sell, transfer, and store their cryptocurrency.
This appears to be the main factor driving the ongoing BTC push towards $13,000, but it remains unclear how long the mounting hype will last.
If BTC can close its weekly candle around its current price levels, it will be the highest weekly close seen since early-2018.
Bitcoin Explodes Higher as Sense of “FOMO” Grows
Investors appear to be rushing away from altcoins and into Bitcoin as fears of missing out on the next parabolic move grow.
The benchmark cryptocurrency is currently trading up over 5% at its current price of $12,500. This marks a massive rise from recent lows of $9,900 that were set at the bottom of the selloff seen just over a month ago.
News regarding PayPal’s foray into crypto appears to be one of the main factors behind this ongoing movement.
BTC Could Soon Post Its Highest Weekly Candle Close Seen Since Early-2018
While speaking about the macro significance of this latest push higher, one analyst observed that a weekly candle close above $12,000 would mark the highest one seen since early-2018.
“BTC: Weekly close above 12k would be the first since early 2018 and trading above the mid level. 21 Weekly MA looks good for pullbacks if price is retests lower down unless it breaks. Bitcoin / Eurusd pushed higher & the dollar lower last 24 hours – SPX not doing much.”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
How Bitcoin trends throughout the next few days could be pivotal for understanding its mid-term trend.
Featured image from Unsplash. Charts from TradingView.