Bitcoin market analysis: Payment giants join the cryptocurrency market
The price of Bitcoin continued to rise yesterday. It is not surprising to break through the previous high of 12,450, but it is quite unexpected to directly break through 13,000 US dollars. This is the first time since July last year that the market has reached 13,000 US dollars. In terms of the increase of 13,200 US dollars, the drop from around 12,800 to around 400 US dollars does not seem to be a big deal, although this drop is enough for some contract users to stop losses or even liquidate their positions.
According to a Reuters report on October 21, payment giant PayPal announced on Wednesday that it has joined the cryptocurrency market, allowing customers to use the company's online wallet to buy, sell and hold bitcoin and other cryptocurrencies. Starting in early 2021, the company's users will also be able to use cryptocurrencies to shop at 26 million merchants on its network, the company said in a statement.
After the announcement of the news, the price of Bitcoin rose sharply, reaching 13,200 US dollars at one point, which was the first time this price had been reached since July last year.
The news is so stimulating because it strengthens the probability of mass adoption. First of all, PayPal itself, a global payment giant, is basically NO.1 in the current US payment market. If its users are allowed to use this The company's online wallet to buy, sell and hold bitcoin and other currencies means more sources of funding for the cryptocurrency market.
Due to the convenience of PayPal, cryptocurrency investor users can give up the exchange and choose to buy cryptocurrency on PayPal, which is undoubtedly much more convenient than the exchange, and users do not need to go through tedious steps such as opening an account and registering an exchange.
And this move of Paypal may also make its original customers interested in cryptocurrencies, and even gradually become one of the financial management methods of these customers, which has a great promotion effect on Bitcoin. Of course, the biggest promotion is still its It is possible to make purchases at official merchants with cryptocurrencies.
The direct purchase of goods by cryptocurrency is equivalent to saying that it has played the basic function of currency. There are roughly 26 million merchants on the Paypal network, and starting from 2021, cryptocurrency can be directly used to purchase goods from these merchants. For users, the cryptocurrency in their hands will add another value in the future.
It is expected that there will be a range of currencies that can directly use cryptocurrencies to purchase goods. Many altcoins or coins with no value will not be recognized as currencies. It is currently estimated that Bitcoin or Ethereum is likely to be within its range.
The above is the impact of the PayPal platform itself on cryptocurrencies, but PayPal is more like an opening function. If it can be used on PayPal, then if other platforms refer to Payple, can they treat it as a currency with currency functions? Woolen cloth?
For example, after the PayPal news broke, major banks were meeting to discuss how to support Bitcoin.
This is the "giant" effect. When a giant company pays attention to one point, other companies that pay attention to this giant company will also start to pay attention to the point it pays attention to, thus bringing more attention to this point. With attention After the degree, more and more people will participate.
In short, the news is extremely good for Bitcoin, and it is a continuous benefit, especially at the beginning of 2021, the use of Bitcoin will continue to be fed back to the market,
Back to the market, the market touched 13,200 US dollars yesterday, a new high for more than a year, and there is only a gap of about 1,000 US dollars from last year's high. From this point of view, there is still a chance.
The current weekly line has risen to the upper track of Boll, and even broke out of the upper track at one time. According to the trajectory of the weekly line in the past two years, there are roughly three times when it hit the upper track of Boll, and one time it rose too much and fell back, so it is not counted. .
These three times were when the rise started in April last year, February this year, and August this year. There were special factors in April last year and February this year. In April last year, the IEO platform currency led the market at that time, and in February this year. It was driven by the black swan in the global financial market, and it was a normal correction in August this year.
The current situation when it is on the track is very similar to that in August this year. There is no IEO good news in April last year, and there is no big bad news in February this year. Continue to fluctuate and rise, even if there is no Boll indicator, it still shows such a trend.
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The probability of stepping on the platform or even returning to the platform is still relatively high. This breakthrough has a coincidence factor. It happened to be near the pressure level and ushered in a big advantage. The bulls also cooperated with the market in a timely manner. As the price rises, there are more and more short-selling orders.
Moreover, they are all naked and short on major platforms, without hedging, which is almost tempting the bulls to pull the market. When it rises to this position, not many people who are long dare to enter the market wantonly, but they are not as attractive as short selling. , after one or two waves, the amount of funds is insufficient or it will be called back
. In addition, if OKEX can withdraw coins, it is very likely that the current bitcoin price will be a negative. Users on the OKEX platform will not buy bitcoins and may start selling coins to withdraw cash, so you can also pay more attention to this aspect.
