PayPal reported on Wednesday it will allow customers to hold bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network. US account holders will be able to buy, sell and hold cryptocurrencies in their PayPal wallets over the coming weeks, the company said.
This new service makes PayPal one of the largest US companies to provide consumers access to cryptocurrencies, which likely helps bitcoin and other cryptocurrencies gain wider adoption as viable payment methods.
Driven by this favorable developments, bitcoin together with GBTC have been rising sharply over the last few days:
The Grayscale Bitcoin Trust (GBTC) can be considered as a proxy for bitcoin developments. It is a trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. Since the GBTC currently has much more data points as the bitcoin future contracts, I use it for a long-time to approach the supposed bitcoin course.
GBTC reached its highest level since the beginning of July 2019! For the week shares rallied +15.69%/+1.95$ and at 14.87$ a next higher 2020 high is printed. GBTC`s determining falling yearly dark-red dotted resistance on the weekly chart was hit and again tested from below. We count this is the all in all third backtest of the almost 3 years determining GBTC main resistance. In course of 2020 the yearly resistance line is tested for the second time.
Thus the market has manoeuvred itself into a perfect position to finally overcome its main threshold in the ongoing third attempt as the third and the fourth tests of a resistance have the highest probabilities to succeed. Yet at the same time this rule means that after a successful overcoming of a resistance at the third/fourth attempt generally the strongest trend moves develop.
==> Normally - and at the very least - the final crossing of the almost 3 year resistance line would mean that the absolute top of the year 2019 at 17.40$ would have to be reached very quickly.
A breakout above 17.40$ activates a more or less direct rally to the highest weekly close ever what sits shy below the important round 30$ Gann Number what is a MAJOR upmagnet. Should the 18$ threshold be overcome til end of 2020 expect the 30$ surroundings to be hit sometime April to May 2021!
There is a valid weekly GBTC GUNNER24 Up Setup that projects that the 17.40$ upmagnet could be worked off within just a few week candles as there is no single indication that GBTC/bitcoin is on the verge of an important top! Nevertheless, at least a brief pause/pullback on daily base here at 3 year determining GBTC main resistance should be expected what could offer a nice long-entry for the now very attractive looking 17.40$ that seems to be a very attractive backtest point in the highly important yearly time frame:
Weekly momentum (not shown) is back to stronger bullish. A next higher year high is printed. And well, the fresh bullish fundamentals of course allow that some more higher year highs should be on the agenda. This week candle is highest weekly close in 2020 and since June 2019.
"There is no single indication that GBTC/bitcoin is on the verge of an important top!" Sic!
Last but not least the GUNNER24 Method fires an usually strong weekly buy signal. Let me explain:
Above you recognize the stand of the valid weekly 9 Candle GUNNER24 Up what starts measuring to the upside at # 1 // 2020 Low.
Accurately the 14.78$ // former 2020 High hit upper line of 1st, always natural possible important uptarget resistance. AT THE SAME TIME the yearly resistance was worked off for the second time.
This hit of double resistance magnet on combined weekly and yearly base led to a 2 month correction into 10.00$ September 2020 low. There started a new upcycle that was able to finish this week candle far above the 1st double arc resistance area. What is a nicely confirmed yearly double arc resistance. ADDITIONALLY this week candle re-conquered the highly important 1*1 Gann Angle, what is another rail on yearly base as it springs out of the final low of 2020.
==> This week close has fired a double buy candle on weekly base and that has activated the fast rally continuation (on weekly base) into lower line of 2nd double arc.
There is an important future backtest rail in the weekly chart for GBTC.
A within this setup naturally anchorable Gann Angle that has shown its importance in the course of 2020. That "2020 Backtest Angle" offered 5 x important support at weekly auctions and this backtest baby is intersecting fresh activated lower line of 2nd double arc EXACTLY at 17.40$. What on the other hand marks the final top of 2019. This 17.40$ year 2019 extreme seems to be a major attracting upmagnet (uptarget main resistance) for the now underway rally cycle!
==> Triple upmagnet is at 17.40$. Market could test back top price of 2019 very quickly and maybe even within next 10 to 15 trading days!
... when we last but not least observe the steepness and strength of the underway rally, that with a 100% accuracy was triggered at the Big Round 10$ W.D. Gann number, it is possible that this bear extreme represents a very, very important higher low and is perhaps a MAJOR HIGHER bull market LOW.
Accordingly, also this observation strongly supports that this rally has to hit and backtest the 17.40$ 2019 High what is nearest yearly upmagnet above current quotations! At a minimum!
Technically resuming all this mentioned above is so extremely positive and midterm bullish, that I think the best the bears will be able to achieve in course of the next few days is a brief and relative mild pullback caused by the still braking 3 year resistance line.
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