Bitcoin (BTC) has been gaining some momentum in the crypto space recently, Crossed the $60,000 mark Contrary to the signals of many analysts, the world’s leading cryptocurrency has been on a wild ride, with its price fluctuations being insane over the past few weeks.
Bullish Factors Driving Bitcoin Price Higher
One of the major factors behind the recent surge in Bitcoin prices is the perception that a Bitcoin spot ETF is likely to be approved by the Securities and Exchange Commission. With such a decision from the SEC likely to finally open the door to increased institutional investment in the cryptocurrency, many investors are taking a risk by entering at current levels.
Another factor behind the rise in Bitcoin price was the decrease in the new supply of Bitcoin after the halving event in the second half of 2024. In general, Bitcoin prices rose by multiples after the halving, as the decrease in supply is directly related to the increase in demand and price.
#Bitcoin 200wma over $38k pic.twitter.com/olAw6BOjgz
— Adam Back (@adam3us) August 21, 2024
Bitcoin’s 200-Week Moving Average Provides Strong Support
Blockstream CEO Adam Back explained that Bitcoin’s 200-week moving average has risen above $38,000, a level that now provides strong support for the cryptocurrency. In fact, the 200-week moving average has been repeatedly treated as one of the most important indicators in Bitcoin analysis as the cryptocurrency has never fallen below this moving average.
Another indicator that reveals Bitcoin’s new gains is the asset’s holding patterns. According to information published by the BTCDirect website, 69% of the Bitcoin supply has not moved for a year or even longer. Of course, another instance of low Bitcoin volume in circulation helps to further ease the selling pressure on the asset, reinforcing the Bitcoin bull case.
Bearish factors to consider
At the time of writing, Bitcoin was Trading at $61,245, The cryptocurrency is up 3.0% over the past 24 hours, and has maintained gains of 4.7% over the past seven days, Coingecko data shows.
Despite the recent surge in Bitcoin, there are still some bearish factors in the background, including the Mt. Gox payout that is likely to put more selling pressure on the market. Earlier in the week, the infamous exchange made another massive transfer to Bitstamp, sparking potential selling pressure.
Another factor driving Bitcoin down is the lack of clear bullish catalysts in the near term. Here’s the latest from banking giant JPMorgan Chase, which advises clients to be extremely cautious before buying into the recent Bitcoin price rally, as the cryptocurrency is likely to face headwinds in the coming months.
Featured image by Pexels, chart by TradingView