Bitcoin Shows Strong Signs After Breaking $13,000, But Will Need To Push Higher For Greater Gains

Bitcoin has maintained its price above $13,000 after breaching the critical price level following PayPal's announcement that clients will be able to buy, sell and store cryptocurrencies using their accounts, however whether it can maintain the rally is yet to be seen. 

On Monday, October 26 Bitcoin bulls have been attempting to push the currency's price past its resistance at $13,200. Throughout the $13,000 price range Bitcoin faces intense selling pressure, but moving above the $13,200 level could spark an even larger bull run. Another strong signal for Bitcoin is that this week marks the first weekly candle close above $11,700 since early 2018, as noted by a popular crypto commentator. 

While Bitcoin's price action has been encouraging, the trade volume on spot exchanges has dropped significantly from the levels they were at when Bitcoin broke past $13,000, Skew data shows. Bitcoin's trade volume is below $200 million across 6 exchanges tracked by the chart. The decrease in trading volume suggests Bitcoin users may be leaning towards HODLing until the currency reaches its next all-time-high. 

Trade volume on exchanges may have dropped, however Glassnode reports Bitcoin's network growth and activity have both been on the rise this week brought on by new addresses, an increase in active addresses and the transaction rate. This week also marks a significant decoupling between Bitcoin and the stock market, an important step towards securing Bitcoin's reputation as a portfolio diversifier and safe haven asset immune to geopolitical events. 

By Emily Mason

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