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
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.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/KeremGogus