Bitcoin is once again ripping to new all-time highs.
A weekend rally has the crypto king up 6.75% at $24,106, according to CoinMarketCap. BTC is up 30.39% in the last week and up 234% since the start of 2020.
Quantitative analyst PlanB says BTC appears to be shrugging off new rules on cryptocurrency transactions proposed by the US Treasury’s FinCEN department late Friday.
#bitcoin looking strong, despite US KYC/AML crap pic.twitter.com/D01V0omOiW
— PlanB (@100trillionUSD) December 19, 2020
Analyst Cantering Clark tells his 40,000 Twitter followers that derivatives appear to be leading today’s rally.
“Perps leading all of this. Expecting a flush at some point before a bigger move up. Might overextend up in the interim but I see us sweeping back down into the $22,000 zone either way.”
Trader Scott Melker says he just closed a leveraged position of his own. About 70% of his spot portfolio remains in BTC.
“Closed my BTC leveraged long. Overbought bear divs are likely, not guaranteed. But I would love to long a retrace if given the chance. Especially a retest of the old all times high as support.”
Digital Currency Group CEO Barry Silbert and Kraken’s director of business development are citing a classic fear of missing out among investors.
Satoshi baked in a fomo viral loop into Bitcoin:
As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.” – SN
— Dan Held (@danheld) December 19, 2020
Satoshi baked in a fomo viral loop into Bitcoin:
The crypto fear and greed index from Alternative.me remains firmly in the greed zone, where it has been for weeks as Bitcoin continues to take out new all-time highs.
According to the creators of the index, extreme greed is a potential sign that investors are over-exuberant and a correction may be on the horizon.
Extreme fear often indicates that traders may have overcompensated and the market is overbought.