Bitcoin bullishers are aiming to close a CME gap to create a path to $18,000.
In the last hour, the price of Bitcoin (BTC) rose to $16,200 to ensure a new high in 2020 of $16,473.
Daily BTC/USDT graph. Source: TradingView
The 6.62% movement brings the highest ranking 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 exceed the $17,200 level if the CME gap is closed.
Despite the excitement surrounding Bitcoin Code platform rise to a new multi-year high, Cointelegraph contributor Micheal van de Poppe indicated that Bitcoin has quickly climbed to new highs without setting strong support levels.
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Van de Poppe said:
„Many levels below the current price are not proven in the weekly time frame. A healthy way to build a new cycle is to test the previous resistance levels as new support areas“.
The analyst also said that the Fear and Greed Index has reached the „Extreme Greed“ level, which can be interpreted as a sell signal according to Van de Poppe.
Fear and Greed Index Source: Digital Assets Data
Bitcoin’s impressive rise to $16,465 comes as the Dow and S&P 500 closed the day in the red with a 1.08% and 0.97% loss.
While stocks had initially risen after President-elect Joe Biden was declared the winner of the U.S. election, in recent days coronavirus infections have risen to a record 150,000 per day, which in turn has made investors fear a new phase of the economy’s closing.
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It is also possible that President Trump’s refusal to concede the election and the prospect of a divided government under a Biden administration may weigh negatively on investor confidence in the future of traditional markets.
Bitcoin has largely ignored the drop in shares and the increase in COVID-19’s circulation, and as of the close of this edition, the crypto currency has risen 26.78% in November and 127.7% so far this year.
Profitability of the current year of the macro assets (%) Source: Skew
Bullish news such as PayPal’s announcement that it has eliminated its waiting list for customers looking to trade in cryptosystems surely works in Bitcoin’s favor.
According to PayPal, payments in cryptomonies will soon be available to 26 million traders worldwide and the payment giant has also raised the trading limit for US-based customers from $10,000 to $20,000 per week.
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Since PayPal has a huge user base, analysts are on the lookout for an influx of new Bitcoin investors as this will likely result in increased demand and drive the price up even further.
In other news, the resurgence of DeFi continued as Uniswap again recorded a strong increase in liquidity, taking the figure to a record $3.2 billion.
Uniswap liquidity (USD).
The DeFi Pulse data also shows that the total value locked in the DeFi platforms has shot up to $13.65 billion. This is another sign that investors are rekindling their interest in DeFi tokens, farming projects and many other opportunities that exist in the industry.
Total value locked in DeFi (USD).
Although the price and volumes of Bitcoin on an assortment of DeFi platforms have been increasing, altcoins have made marginal gains. Ether (ETH) was up 1.29%, trading above $460 again, and Cardano (ADA) was up 7.97%. Chainlink (LINK) was one of the strongest, up 12% at $12.65.
According to CoinMarketCap, the market capitalization of cryptosystems now stands at $466.5 billion and the Bitcoin dominance rate is 65.4%.