Over the past hour, Bitcoin (BTC) has risen to $ 16,200, hitting a new 2020 high of $ 16,473.

The 6.62% move brings the leading digital asset closer to bridging the CME gap in the $ 16,465 region to $ 16,570, and an increasing number of analysts expect price to cross the $ 17,200 level if the CME gap closes.

Despite the tension surrounding Bitcoin’s meteoric rally to new highs, Cointelegraph shareholder Michael Van de Pope noted that Bitcoin is rapidly climbing to new heights without creating strong support.

Van de Poppe says:

“Many levels are not tested below the current price on the weekly timeframe. A healthy way to build a new cycle is to test previous resistance levels as new support areas.”
The analyst also said that the Crypto Fear and Greed index had reached the “extreme greed” level, which could be interpreted as a sell signal.

A coded fear and greed indicator. Source: Data on digital assets.
A great bitcoin spike to $ 16,465 occurred when the Dow and the S&P 500 ended the day in the red with losses of 1.08% and 0.97%.

While stocks rose sharply at first after President-elect Joe Biden was chosen as the winner of the US election, the number of coronavirus cases across the country rose to a record high of 150,000 cases per day in recent days, which in turn made investors fear the prospect. new. Financial stops can be announced.

President Trump’s refusal to recognize the elections and the potential for defecting from the government under the Biden administration could also negatively affect investor confidence in the future of traditional markets.

Bitcoin has largely ignored the decline in stocks and the increasing spread of COVID-19, with the token price increasing by 26.78% in November and 127.7% since the start of the year.

Return on total assets for the current year. Source: Skew
Emerging news like PayPal’s announcement of canceling its waiting list for clients wishing to trade cryptocurrencies undoubtedly works in Bitcoin’s favor.

According to PayPal, the payment giant will soon be available to 26 million merchants worldwide, and the payment giant has also increased its trading limit for US clients from $ 10,000 to $ 20,000 per week.

Given PayPal’s huge user base, analysts are anticipating an influx of new bitcoin investors, as the adoption is likely to increase demand and increase the price.

DeFi 2.0?
In other news, it should be noted that DeFi’s comeback has continued, as Uniswap has once again posted significant liquidity growth, bringing that figure to a record $ 3.2 billion.

DeFi Pulse data also shows that the total value of DeFi blocked platforms has increased to $ 13.65 billion. This is another sign that investors are renewing interest in DeFi codes, agricultural projects, and the many other opportunities that exist in the sector.

While the price and volume of Bitcoins rose on the various DeFi platforms, altcoins made marginal gains. Ether (ETH) was up 1.29%, trading above $ 460 again, while Cardano (ADA) was up 7.97%. Chainlink (LINK) rose 12% to $ 12.65.

According to CoinMarketCap, the total cryptocurrency market cap is currently $ 466.5 billion, and Bitcoin’s dominance rate is 65.4%.

Source: CoinTelegraph

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