Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout

The price of Bitcoin hit a new yearly high at $16,717 on Binance.

Second, there is a "Sell-side crisis" brewing as more BTC gets accumulated than mined.

Third, BTC rallied despite indicators showing overbought signals.

Earlier today, John Bollinger, a veteran trader, and the creator of the Bollinger Bands indicator, said he was wrong about a Bitcoin correction.

BTC continuously rallied, seeing intensifying momentum.

"Looks like I was wrong about the chance of a correction, all we got was a bit of consolidation and then back to the races. $btcusd Broken setups like this are signs of strength so currently the path of least resistance is higher. #BTC". Derivatives traders have also pointed to the declining Bitcoin supply leading to a sell-side crisis.

A pseudonymous futures and options trader known as "Light" said around 3,000 BTC have been withdrawn daily since BTC hit $10,000.

"Now at $16,600 from $11,000. Since the break of $10,000, ~3000 BTC has been withdrawn net DAILY from the main BTC centralized exchanges... Miners refuse to sell their recently halved rewards in the face of demand and are comfortably above break-even."BTC price reacts positively to today's vaccine breakthrough.

This time, following Moderna's highly anticipated vaccine results release, Bitcoin has actually increased by nearly 5%. In the same period, gold has struggled, gaining a mere 0.17%. But, traders say that if Bitcoin drops as it did on Nov. 12, then it would present a "Dip buying" opportunity.

The combination of technical momentum, a sell-side crisis, and the sheer momentum of the rally are causing BTC to stay stable above $16,000.