Bitcoin has managed to rise to a three-month high on Monday as the liquidation of short positions at the end of last week provided a boost to the digital currency.
In early afternoon trading in London, Bitcoin was up 2.5% in the last 24 hours at US$45,655, giving it a market cap of US$856bn.
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The price was a small retreat from the US$45,885 figure reached at around 1pm, the highest value for Bitcoin since mid-May, however it is still well off the all-time high of over US$63,000 reached in mid-April.
According to crypto market data site Datamish, the price rise for Bitcoin over the weekend followed the liquidation of around 126 Bitcoin’s worth of short positions on Friday, which at the time was worth upwards of US$5.1mln.
Data from Glassnode also indicated that crypto wallet addresses holding more than 0.1 Bitcoin were at their highest level in two months, a sign of bullish activity, while digital asset firm Zerocap told CoinDesk that Bitcoin whales, large market players holding between 100 and 10,000 Bitcoin, have been building long-term positions which “bodes well for the structure of the market”.
In terms of fundamentals, the price rise has also put Bitcoin around its 200-day moving average of around US$45,000, which if surpassed could signal more buying activity in the market.
“The 200-day moving average at approximately $45,000 has provided some resistance – a clean break here could lead to the next accelerated push higher”, Zerocap’s head of trading Toby Chapple told CoinDesk.