Technical Analysis of BTC/USD for October 22, 2020

Crypto Industry News:

One of the world's leading online payment processors, PayPal, will enable US customers to buy bitcoin and other cryptocurrencies in the coming weeks. Availability of the service for customers from other countries is expected to appear in the first half of 2021.

PayPal has joined the cryptocurrency market and will enable its customers to store, buy and sell bitcoin and other cryptocurrencies using fiat currency. PayPal customers will be able to spend BTC on purchases from over 26 million vendors who have already been on its network since early 2021, reports Reuters.

The company said it "works with central banks and thinks of all forms of digital currencies, and PayPal can play a role." The president of PayPal also hopes that this service will encourage the continued use of virtual currencies, as well as prepare its network for central bank digital currencies (CBDC).

US customers will be able to buy, sell, and store cryptocurrencies via their PayPal wallets in the coming weeks. PayPal also plans to expand this offer to Venmo and other countries in the first half of next year.

Technical Market Outlook:

The BTC/USD pair has hit the level of $13,000 after the PayPal news had been released. The new swing high had been made at the level of $13,159 and a Pin Bar candlestick pattern was made at the end of the rally. The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,621 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:

WR3 - $12,229

WR2 - $11,973

WR1 - $11,678

Weekly Pivot - 11,375

WS1 - $11,077

WS2 - $10,755

WS3 - $10,461

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.

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