Good News! Bitcoin Hovers Around $47k After 3 Months

In what comes as good news for Bitcoin investors, the world’s most sought after cryptocurrency has touched a three-month high as it hovered around $47k Monday.

Bitcoin was trading at $46,932, 5.07% higher, as of 4.46 a.m. ET, CoinMarketCap data showed. This led the global market cap to rise to $2.11 trillion.

According to WazirX’s daily analysis, the next resistance for BTC is expected at $48,600 and the next support for Bitcoin is expected at $34,200.

Industry insiders believe that Bitcoin’s price hike comes as the Luna Foundation Guard (LFG) purchased another $125 million worth of the digital asset as part of its plan to take exposure to $10 billion Bitcoin.

“The pre-existing supply crunch, evident by constant drainage off exchanges over the past few months also added to the price rally. With bitcoin leading the charge, most of the altcoins have followed suit, averaging overnight returns of ~ +5%,” CoinDCX Research Team told International Business Times.

Raj Kapoor, the chief advisor at Acryptoverse, believes that the global increase in the adoption of Bitcoin could be one reason for the rise in the price of the top coin. He further said the growing inflation of the U.S. dollar could be another reason for the rise in prices.

On the other hand, Joe DiPasquale, CEO of fund manager BitBull Capital, told CoinDesk that Bitcoin had had "a strong week, especially given the quarterly options expiry" on Friday and noted that Bitcoin had "shown resilience" following the Federal Reserve's decision last week to raise interest rates and the escalation of Russia's invasion of Ukraine.

The correction in Bitcoin price comes months of trading lower. Some experts had lost faith in the future of the top coin.

"Bitcoin for me has a nasty head-and-shoulders pattern on it. Believe it or not, in early 2022, or early 2023, you could see a move down sub-$20,000 in Bitcoin," Gareth Soloway, president and CFO of InTheMoneyStocks.com told Yahoo Finance Live earlier in January.