Bitcoin Price Analysis — October 23

The week was a very eventful week for the cryptocurrency industry, with Bitcoin (BTC) recording a new YTD high above the $13k mark. Meanwhile, the whole cryptocurrency market grew by about $40 billion over the past seven days.

The major catalyst for this disruptive move was an announcement from Paypal. The payment services provider announced that their customers in the US can make Bitcoin transactions from next week, while the rest of the world would be updated by the first half of 2021.

Paypal has millions of merchants on its network and would actively work at incorporating digital currencies across its system. Also, it would be interesting to see how banks react to this news considering the minute amount of banks that accept Bitcoin transfers. 

Already, reports indicating that the payments behemoth is in talks with BitGo—a major Bitcoin custodian—over a possible acquisition. 

Almost immediately after that, reports started circling, indicating that PayPal is in talks with BitGo, a leading Bitcoin custodian, over a potential acquisition deal.

In other news, billionaire investor Paul Tudor Jones III has doubled-down on his Bitcoin investment, as he believes that it is the best hedge against inflation.

It has been a very active week for the benchmark cryptocurrency and it would be interesting to see how it performs in the last two months of 2020.

Key BTC Levels to Monitor in the Near-Term

Following several days of intense bullishness, Bitcoin is starting to slow down as expected. That said, we could see a modest retrace in Bitcoin in the coming days. We could expect a drop to the $12,500 level in the near-term, where BTC will likely see some dip-buying before resuming upwards.

However, the possibility of seeing additional declines from the $12,500 support is not off the table.

Total market capital: $391 billion

Bitcoin market capital: $239 billion

Bitcoin dominance: 61%

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