PayPal is launching its own cryptocurrency service, allowing people to buy, hold and sell digital currency on its site and applications.The online payments company declared adding crypto was a significant milestone on the path to mainstream adoption of cryptocurrencies such as bitcoin. Bitcoin investors agreed: Prices rose 5% on the news Wednesday.
PayPal says its new service will give customers the ability to hold and exchange Bitcoin, Ethereum, Bitcoin Cash and Litecoin cryptocurrencies using the company’s digital wallet, which lets people shop online, request and send money.
The company’s US customers will receive crypto service access in the coming weeks, but they won’t be able to pay for products and services using cryptocurrency until early 2021. PayPal’s Venmo customers and select international consumers won’t have crypto services until some time in the first half of 2021.Investors responded positively to the news Wednesday, as PayPal’s (PYPL) stock price surged following opening bell before retreating close to where it opened for the day. The company’s stock has more than doubled since the beginning of the Covid-19 pandemic in the United States in mid-March.
The pandemic has fueled a boom in the online payments industry and companies like PayPal, Square (SQ) and Venmo — which is owned by PayPal — because many coronavirus-wary consumers are avoiding the use of physical cash.
PayPal isn’t the only major company betting on cryptocurrencies. Square spent $50 million to buy more than 4,700 bitcoins earlier this month. Square Chief Financial Officer Amrita Ahuja told reporters at the time that the company believes bitcoin could be more a “more ubiquitous currency in the future.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 11,004.22.
The projected upper bound is: 13,541.57.
The projected lower bound is: 11,957.84.
The projected closing price is: 12,749.70.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 83.9336. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 72.48. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 76 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 230.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -134.800 at 12,722.700. Volume was 79% below average (consolidating) and Bollinger Bands were 41% wider than normal.
Open High Low Close Volume 12,855.000 13,247.850 12,687.960 12,722.700 138,743
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 11,757.35 10,877.91 9,894.52 Volatility: 52 45 55 Volume: 385,975 567,664 541,292
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 28.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 25 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.