In the last hour Bitcoin (BTC) price rose to $ 16,200 to hit a new 2020 high of $ 16,473.
The 6.62% move brings the senior digital asset closer to closing a CME gap in the $ 16,465 to $ 16,570 range and a growing number of analysts expect the price to move past the $ 17,200 level as the CME gap closes.
Despite the excitement over Bitcoin’s spike to a new multi-year high, Cointelegraph made a contribution Micheal van de Poppe stated that Bitcoin rose quickly to new highs without setting strong support levels.
Van de Poppe said:
“Many levels below the current price are not tested on the weekly timeframe. A healthy way to build a new cycle is to test previous resistance levels as new areas of support. “
The analyst also said that the The Fear and Greed Index has reached the level of “Extreme Greed”, which can be interpreted as a sell-signal after Van de Poppe.
Bitcoin’s impressive surge to $ 16,465 was due to the Dow and SP 500 ending the day in the red with a loss of 1.08% and 0.97%.
While Shares initially rose after President-elect Joe Biden was named the winner of the US election. but in the last few days Coronavirus infections have risen to a record 150,000 infections per dayThis, in turn, has led investors to fear that a new phase of economic shutdown will be announced.
To It is possible that President Trump’s refusal to allow the election and the prospect of a split government under a Biden administration could negatively affect investor confidence in the future of traditional markets.
Bitcoin has largely ignored the decline in stocks and the spread of COVID-19 At press time, the cryptocurrency is up 26.78% in November and 127.7% this year.
Bullish news like PayPal’s announcement that it has removed the waiting list for customers who want to trade cryptocurrencies is sure to have a positive effect on Bitcoin.
According to PayPal, cryptocurrency payments will soon be available to 26 million merchants worldwide. The payment giant also increased the trading limit for customers based in the United States from $ 10,000 to $ 20,000 per week.
Since PayPal has a huge user base, Analysts expect an influx of new Bitcoin investors as this will likely lead to increased demand and drive the price even higher.
In other news, DeFi’s resurgence continued when Uniswap saw its liquidity surge again, reaching a record $ 3.2 billion.
DeFi Pulse data shows this too The total value locked on DeFi platforms increased to $ 13.65 billion. This is another sign that investors are rekindling their interest in DeFi tokens., agricultural projects and many other opportunities that exist in the industry.
Although the price and volume of Bitcoin has increased on a number of DeFi platforms, Altcoins have posted marginal gains. Ether (ETH) rose 1.29% and was again trading above USD 460, Cardano (ADA) up 7.97%. Chainlink (LINK) was one of the strongest, rising 12% to $ 12.65.
According to CoinMarketCap Cryptocurrency market cap is now at $ 466.5 billion and Bitcoin’s dominance rate is 65.4%.