The crypto markets are cheering PayPal’s decision to allow its customers to use cryptocurrencies to shop from its vast merchant network. PayPal also revealed that U.S. account holders will be able to buy, sell, and hold cryptocurrencies in the PayPal app.
The company plans to extend this service to a few other countries in the first half of 2021. PayPal’s decision has significantly increased the reach of cryptocurrencies. Now many of the company’s 346 million active users will have the options to engage with cryptocurrencies and become investors if they choose.
However, a mass influx of investors into cryptocurrencies is likely to take more time. Ultimately, this move by PayPal proves that companies cannot ignore the rise of digital assets anymore.
Although the news is bullish, a vertical rally may not materialize immediately. After the initial buying frenzy dies down, the extent of any future correction will confirm whether a new roaring bull market has begun or if institutional investors used this news to lighten up their positions in order to buy at lower levels.
Let’s analyze the charts of the top-10 cryptocurrencies and spot the critical levels to watch out for.
Bitcoin (BTC) soared above the resistance line of the ascending channel on Oct. 20. That was followed by a sharp up-move today when the bulls propelled the price above the stiff overhead resistance at $12,460.
A new 52-week high is generally a bullish sign. The breakout of the ascending channel gives the BTC/USD pair a target objective of $12,975. If this level is crossed, the rally may extend to $14,000.
The current up-move has pushed the relative strength index to 80. Previous instances show that the risk of a correction increases when the RSI rises above 80.
The first sign of weakness will be a break and close (UTC time) below the previous resistance turned support at $12,000.
Conversely, if the bulls can arrest the next correction at $12,000, it will signal strength and increase the possibility of