Bitcoin has made yet another new 2020 high.
We have finally entered a period where Bitcoin is breaking a new level and making a new high every other day.
Now, we are mere inches away from hitting the all-time high of $20,000.
In the last three days after the digital asset took a dip to $15,700 on Sunday, BTC/USD has increased 17.5% in value, going as high as $18,450, a level we saw on December 18, 2017, with more than $6 billion in ‘real’ volume.
With the recent move, the Twitter mentions of the leading digital asset have also ramped up to early 2018 level, finally.
The number of unique Twitter users talking about $Bitcoin just hit its second highest level since February 2018. 😮😮 pic.twitter.com/VExnEjl5F9
— The TIE (@TheTIEIO) November 18, 2020
Additionally, this month, Bitcoin is averaging over 1 million daily active addresses, closing in on the all-time high of 1.29 million set in Dec. 2017.
Classic Liquidity Crunch, baby!
Bitcoin broke the new levels yesterday on light volume, but soon it was able to muster speed as we continued ripping higher and higher, poised to end November at a new peak.
“Bitcoin is shredding each resistance on the daily and high time frames. With a close over $17,150, the next major daily/weekly resistance would be at $18,953 to $19,187,” said trader Josh Roger.
And although we have been due for a pullback for a long time now, it doesn’t look like a correction is coming.
“The fundamentals are firmly in control right now as increasingly large players are entering this tiny market,” noted analyst Mati Greenspan.
“We've seen this dynamic play out in 2017 with the retail market. When everybody is buying and nobody is selling, it doesn't take a lot of volume to push the price higher. When there's no bitcoin available, buyers are forced to continuously increase their price until the order gets filled. it's a classic liquidity crunch,” he wrote in his daily newsletter Quantum Economics.
This makes sense given that all the attention the flagship cryptocurrency has received from the high-profile figures likes Paul Tudor Jones, Anthony Scaramucci, Ricardo Salinas Pliego, and Bill Miller, and of course Visa, MasterCard, Paypal, and Square — all on the buy side.