The 6.62% move brings the top-ranked digital asset closer to closing a CME spread in the $ 16,465 to $ 16,570 area and a growing number of analysts expect the price exceeds the $ 17,200 level if the CME gap is closed.
Despite the excitement surrounding Bitcoin’s skyrocketing to a new multi-year high, Cointelegraph contributor Micheal van de Poppe pointed out that Bitcoin has quickly reached new highs without establishing strong supports.
Van de Poppe said:
“Many levels below the current price are not tested over the weekly period. A healthy way to start a new cycle is to backtest previous resistance levels as new areas of support.
The analyst also said that the Crypto Fear and Greed index has reached the “Extreme Greed” level, 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 initially rose after President-elect Joe Biden was declared the winner of the U.S. election, but in recent days coronavirus infections have hit a record 150,000 infections per day, raising fears to investors that a new phase of economic closures could be announced.
It’s also possible that President Trump’s refusal to concede the election and the prospect of a divided government under a Biden administration is weighing negatively on investor confidence in the future of traditional markets.
Bitcoin has largely ignored the stock pullback and growing spread of COVID-19 and at the time of writing, the cryptocurrency has risen 26.78% in November and 127.7% since the start of the month. ‘year.
Bullish news like PayPal’s announcement that it has reduced its waiting list for customers looking to trade cryptocurrencies is surely working in Bitcoin’s favor.
According to PayPal, crypto payments will soon be available for 26 million merchants worldwide and the payments giant has also increased the trading cap for US-based customers from $ 10,000 to $ 20,000 per week.
Since PayPal has a huge user base, analysts are watching to see if there is an influx of new Bitcoin investors, as this will likely lead to increased demand and push the price even higher.
In other news, DeFi’s recovery continued as Uniswap again saw a surge in cash flow, taking the figure to a record $ 3.2 billion.
Data from DeFi Pulse also shows the total value locked in DeFi platforms soared 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.
As the price and volumes of Bitcoin on an assortment of DeFi platforms have increased, altcoins have seen marginal gains. Ether (ETH) rose 1.29% to trade again above $ 460, and Cardano (ADA) added 7.97%. Chainlink (LINK) was one of the top performers, rallying 12% to trade at $ 12.65.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $ 466.5 billion and Bitcoin’s dominance rate is 65.4%.