Bitcoin price moves lower as analyst questions PayPal reports

Bitcoin price moves lower as analyst questions PayPal reports
Written by:
Michael Harris
30th June, 19:06
  • Bitcoin price is trading around the $9,000 mark after setting a new 1-month low at $8,830
  • A crypto analyst said that details surrounding PayPal are still scant
  • The sellers will look to push the price towards the key short-term support around $8,400

Bitcoin price (BTC/USD) is hovering around the $9,000 handle after buyers have managed to return above this important level. In the meantime, a well-respected crypto analyst says that the community is still not convinced about reports about PayPal.

Fundamental analysis: Scant details 

Simon Peters, an analyst at eToro, discussed the recent news about PayPal offering its clients an option to buy and sell crypto. He said that details surrounding PayPal are scant as all parties involved have declined to comment.

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“The most interesting thing will be if (and how) PayPal utilises its pre-existing arrangements with various physical and online retailers. Given that a massive swathe of online retailers already have some deep integration with PayPal, will the firm begin to offer payment directly with crypto?” Peters said.

The news broke out after multiple persons familiar with the matter provided this information, however, not all in the cryptocurrency community are convinced of the authenticity of the rumours. 

“That would be exciting indeed and would be a huge step towards seeing crypto assets, such as bitcoin and its forks, being used to pay for everyday goods and services”.

The move from the online payments company would let 325 million of its users buy and sell Bitcoin, which would be a huge step in terms of adoption of digital currencies.

“After the news broke, Bitcoin hit a very respectable $9,699, dropping off towards the end of the week as markets got spooked about the spike in coronavirus cases in some parts of the world,” Peters concluded.

Technical analysis: Bulls return the favour

The buyers struggled to sustain the positive momentum after PayPal reports emerged. As a result, the price action dipped below $9,000 to print the 1-month low at $8,830. However, the buyers hit back and pushed the price action above the $9,000 handle again over the weekend. 

Bitcoin price daily chart (TradingView)

The zone around $9,100 is an important horizontal level for the price action. Numerous attempts to push above $10,000 have failed in June, paving the way for a move lower in July. If this is the way forward then sellers will look to push the price towards the key short-term support around $8,400. 

This level will also provide an opportunity to buyers to get on the long side and invest in BTC/USD

Summary

Bitcoin price is trading around the $9,000 mark again after printing a 1-month low at $8,830. Simon Peters, an analyst at eToro, said that details surrounding PayPal are still scant and issued a call for caution.

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