Bitcoin (BTC) has been gathering some momentum in the crypto sphere lately, crossing the $60,000 mark against multiple analysts’ signals. The world’s leading cryptocurrency has been on a wild ride, with its price fluctuations going haywire during the past few weeks.
Bullish Factors Driving Bitcoin Price
One major driver behind the recent price surge in Bitcoin is the understanding that a spot Bitcoin ETF is likely to be approved by the SEC. With immense anticipation of such a decision from the SEC, which is likely to finally open the door for increased institutional investments in the cryptocurrency, many investors are risking an entrance at the current levels.
Another factor that has been driving Bitcoin’s price has been the reduction in new BTC supply following the halving event in the second half of 2024. Generally, prices for Bitcoin have soared after halving by multiples, since the reduced supply directly correlates with higher 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 the 200-week moving average of Bitcoin had risen past $38,000, a level that now provides solid support for the cryptocurrency. Indeed, the 200MA has repeatedly been treated as one of the most important indicators in Bitcoin analysis since the cryptocurrency never went below this moving average.
Another revealing metric as far as new Bitcoin gains are concerned would be the holding patterns of the asset. According to information published by the online site BTCDirect, 69% of BTC supplying has not moved for a year or even longer. Of course, another instance of a lessening volume of BTC in circulation helps to alleviate selling pressure on the asset further, cementing a bullish thesis for Bitcoin.
Bearish Factors To Consider
At the time of writing, Bitcoin was trading at $61,245, up 3.0% in the last 24 hours, and sustained a 4.7% gain in the last seven days, data from Coingecko shows.
Despite the recent price spike in Bitcoin, there are some bearish factors that remain in the background, one of which is the Mt. Gox repayments that are likely to put more selling pressure into the market. Earlier in the week, the infamous exchange made another whopping transfer to Bitstamp, setting off possible selling pressure.
Other bear factors are a lack of readily apparent bull catalysts near term for Bitcoin, with the following being the latest from banking behemoth JPMorgan, advising clients to be very mindful before buying into Bitcoin’s recent price recovery, as the cryptocurrency is likely to face headwinds into the next several months.
Featured image from Pexels, chart from TradingView