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Bitcoin Weekly Outlook: PayPal FOMO 2.0 Validates $20K Target

Bitcoin Weekly Outlook: PayPal FOMO 2.0 Validates $20K Target

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Bitcoin Weekly Outlook: PayPal FOMO 2.0 Validates $20K Target

Published at Mon, 23 Nov 2020 05:58:55 +0000
Bitcoin RSI remains overbought for months, expecting gigantic downside corrections.
That somewhat clarifies the current price rally is institutional, i.e., fewer investors with large bags of capital to buy Bitcoin. A California-based investment firm provides evidence about the way the world’s largest payment company is driving the upside moves.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
The previous week saw the cryptocurrency on a tear even as it exchanged way above its actual current prices. Meanwhile, its momentum oscillator, the Relative Strength Indicator, continued to alert about its “overbought” signals.
Bitcoin dangers correction after posting seven weekly earnings in a row.

Bitcoin At $20K

“PayPal’s crypto infrastructure provider is Paxos,” explained Pantera. “Before PayPal integrated crypto, itBit, the Paxos-run exchange, has been doing a fairly steady amount of trading volume. When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is currently buying nearly 70 percent of the new supply of bitcoins.”
The incredible uptrend happened without concrete hype. A mere check on the keyword’bitcoin’ on Google Trends shows no flourishing number of searches. In comparison, Bitcoin’s previous bubbles towards its all-time high levels in 2013 and 2017 had the Google searchers on a tear.
Bitcoin’s bullish fundamentals continue to overshadow its bearish technicals.

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So it seems, the PayPal narrative alone is sufficient to push the Bitcoin cost up by $2,000 this week.
Implied PayPal Bitcoin Purchases (through itBit Volume). Source: Pantera Capital

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
The set recovered back to close the session at $18,437. It was trading near exactly the exact same level on Monday while targeting $18,500 as its flippable support/resistance.
The PayPal FOMO could allow Bitcoin to hold $18,500 as support for its next upward leg towards $20,000, its record high with a huge sentimental value among traders. The sooner the cryptocurrency strikes the level, the early it would fix lower thanks to the overheated RSI.

Together, PayPal and its rival Square’s CashApp are now buying more than 100 percent of the newly-mined Bitcoin. That leaves the cryptocurrency in a supply deficit — against its booming retail and institutional demand.
In a report published this weekend, Pantera Capital claimed that PayPal is buying most newly-mined Bitcoin units — roughly 70 percent of all. Last month, the fintech giant launched a crypto shop on its present US platform, thereby allowing its 300 million consumers to store, sell, buy, and invest Bitcoin and other cryptocurrencies.
This weekend’s small downside correction has revealed Bitcoin’s capacity to hold itself from two extremely assertive sell-off efforts. For instance, on Sunday, the BTC/USD exchange rate fell to as low as $17,610, simply to get overturned with a solid buying sentiment later.

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