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Over the past hour, the price of Bitcoin (BTC) has risen to the $ 16,200 level to secure a new 2020 high of $ 16,473.
The 6.62% move brings the tier 1 digital asset closer to bridging a CME gap in the $ 16,465 to $ 16,570 zone, and a growing number of analysts expect the price to break above the $ 17,200 level if the CME gap is closed.
Despite the excitement surrounding Bitcoin’s rise to a new multi-year high, Cointelegraph contributor Micheal van de Poppe pointed out that Bitcoin has rapidly climbed to new highs without establishing strong supports.
Van de Poppe said:
“Many levels below the current price were not tested in the weekly period. A healthy way to build a new cycle is to backtest previous resistance levels as new support areas. “
The analyst also said that the Crypto Fear and Greed Index has reached the level of “Extreme Greed”, which can be interpreted as a sell signal according to Van de Poppe.
Bitcoin’s impressive rally to $ 16,465 comes as the Dow and S&P 500 ended the day in the red with a loss of 1.08% and 0.97%.
While shares had initially risen after President-elect Joe Biden was declared the winner of the U.S. election, coronavirus infections have risen to a record 150,000 infections per day in recent days, which in turn has made investors fear that a new phase of economic shutdowns could be announced.
It is also possible that President Trump’s refusal to grant elections and the prospect of a divided government under a Biden administration could weigh negatively on investor confidence in the future of traditional markets.
Bitcoin has largely ignored the decline in shares and the growing spread of COVID-19, and as of this writing, the cryptocurrency is up 26.78% in November and 127.7% year to date.
Bullish news like PayPal’s announcement that it has canceled its waiting list for customers looking to trade cryptocurrencies are definitely working in Bitcoin’s favor.
According to PayPal, cryptocurrency payments will soon be available to 26 million merchants around the world, and the payment giant has also increased the trading limit for US-based customers from $ 10,000 to $ 20,000 per week.
Given that PayPal has an immense user base, analysts are looking to see if there is an influx of new Bitcoin investors as this will likely result in increased demand and push the price even higher.
DeFi 2.0?
In other news, DeFi’s resurgence continued as Uniswap saw a sharp rise in liquidity again, taking the figure to a record $ 3.2 billion.
DeFi Pulse data also shows that the total value locked in DeFi platforms has risen to $ 13.65 billion. This is another sign that investors are rekindling their interest in DeFi tokens, agriculture projects, and many of the other opportunities that exist in the industry.
While Bitcoin’s price and volumes on an assortment of DeFi platforms are on the rise, altcoins have seen marginal gains. Ether (ETH) was up 1.29% to trade above $ 460 again, and Cardano (ADA) gained 7.97%. Chainlink (LINK) was one of the best performers, rallying 12% to $ 12.65.
According to CoinMarketCap, the overall market capitalization of cryptocurrencies is now $ 466.5 billion, and Bitcoin’s dominance rate is 65.4%.
