Lorenzo Stroe
Independent Analyst
- Bitcoin price dropped by 2% within the past hour despite positive news.
- PayPal just announced that eligible US customers can already purchase cryptocurrencies through the platform.
In October, PayPal, the giant payment provider, announced the support for cryptocurrencies enabling users to buy, sell, and hold digital assets. The initial launch was set for early 2021; however, due to the initial demand, the company decided to start as soon as possible. The company has just made public that eligible US customers can already purchase cryptocurrencies through the platform.
Unfortunately, it seems that the announcement was already priced in, and Bitcoin price is experiencing a classic case of ‘sell the news,’ plummeting 2% within the past hour to the $15,900 area after touching $16,199.
Bitcoin could be poised for a correction before resuming its uptrend
Although Bitcoin price did crack $16,000, it seems that bulls are having a tough time keeping the price above this level. A new resistance level, around $16,125, was established as the most critical barrier in the short-term.
BTC/USD 1-hour chart
Bitcoin price has pierced four different times through the $16,125 level but never managed to close above it on the 1-hour chart. The price and the RSI have formed a clear bearish divergence, which indicates the trend is weakening. The 50-SMA at $15,637 could be the next short-term price target.
BTC IOMAP chart
However, despite the overextension of Bitcoin price, on-chain metrics suggest that there is very little resistance to the upside. The In/Out of the Money Around Price (IOMAP) chart shows there seems to be almost no opposition above $16,000, with the most significant area between $16,472 and $16,954. A breakout above this point could quickly drive Bitcoin price towards $18,403. On the other hand, according to the IOMAP chart, there are several strong support areas below $16,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.