March 28, 2022
By Anjali Kochhar
The world’s most sought-after cryptocurrency Bitcoin has touched its three months high as it hovered around $47k Monday.
Bitcoin was trading at $46,901, 4.95% higher, as of 12.23 PM IST, CoinMarketCap data showed. The global market cap was up 4.73% at $2.12 trillion.
According to WazirX’s daily analysis, the daily chart for Bitcoin has broken out of the triangle pattern and crossed the critical resistance level of $44,500, continuing its momentum ahead.
“This indicates the beginning of a bullish rally. The next resistance for BTC is expected at $48,600 and the next support for Bitcoin is expected at $34,200,” the Wazir X trade desk told Blockchain Asset Review.
Industry insiders believe that Bitcoin’s rally over $46k comes as the Luna Foundation Guard (LFG) purchased another $125 million worth of the digital asset, in order 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 Blockchain Asset Review.
Shivam Thakral, CEO of BuyUcoin, said that the price hike could also be attributed to “some concrete positive developments around crypto” especially UK hinting towards bringing crypto regulation for blockchain-based stablecoins and several other countries fast-tracking their crypto regulations.
Meanwhile, Raj Kapoor, chief advisor at Acryptoverse, believes that global increase in adoption of Bitcoin could be one reason for the rise in price of the top coin.
“With Paypal’s increased adoption, the sentiment aligns with easier access to crypto. Not just PayPal, but other publicly traded companies purchasing Bitcoin shows a high level of confidence in its appreciation. PayPal has announced that it would soon allow its users and merchants to buy, sell, hold, and accept Bitcoin and other cryptocurrencies as a form of payment,” Kapoor told Blockchain Asset Review.
Kapoor believed that the growing inflation of the U.S. dollar could be another reason for the rise in prices.
The correction in Bitcoin comes months of trading lower, forcing some experts to lose 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.
However, it feels like gaining momentum can bring back the trust of analysts and investors in the top coin.
Charles Tan, head of marketing at Coinstore, said, “We may expect a slight correction in the prices soon because investors may consolidate their portfolio as we are approaching the end of the quarter and even the end of the financial year in India and some countries.”
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
