As a seasoned crypto investor with over a decade of experience navigating the volatile waters of the digital asset market, I must say that the recent surge in Bitcoin’s price has brought back memories of the 2017 bull run. However, this time around, it seems like we have more fundamental factors driving the growth.
Recently, Bitcoin (BTC) has been picking up speed in the crypto market, surpassing $60,000 despite several predictions from analysts. This top digital currency has experienced quite a rollercoaster journey, as its value has shown extreme volatility over the past couple of weeks.
Bullish Factors Driving Bitcoin Price
A significant factor fueling the recent rise in Bitcoin’s price is the expectation that a Bitcoin Spot ETF will be authorized by the Securities and Exchange Commission (SEC). The prospect of this approval has sparked widespread anticipation among investors, as it could signal increased institutional investment in cryptocurrency. Consequently, some investors are choosing to invest at current levels despite the inherent risk.
One key reason behind Bitcoin’s rising cost has been the decrease in newly minted BTC following the halving event around mid-2024. Historically, Bitcoin’s price has surged significantly after a halving due to the basic economic principle that less supply combined with increasing demand leads to an increase in price.
#bitcoin 200wma over $38k
— Adam Back (@adam3us) August 21, 2024
Bitcoin’s 200-Week Moving Average Provides Strong Support
Adam Back, Blockstream CEO, noted that the 200-week moving average of Bitcoin surpassed $38,000, a point which serves as robust support for the digital currency. In fact, this 200MA has been a significant benchmark in Bitcoin analysis since the cryptocurrency has never dipped below this moving average since its inception.
As a crypto investor, I find it intriguing to delve into the holding patterns of Bitcoin. Data from BTCDirect indicates that around two-thirds of the circulating BTC have been stationary for a year or more. This reduced circulation volume could potentially lessen selling pressure on the asset, strengthening the bullish case for Bitcoin.
Bearish Factors To Consider
Currently, as I’m typing this, Bitcoin is being exchanged for approximately $61,245, marking a 3.0% increase in the past 24 hours. Over the last week, it has experienced a growth of 4.7%. These figures are based on data provided by Coingecko.
Regardless of the current surge in Bitcoin prices, there are underlying bearish elements at play. One such factor is the ongoing Mt. Gox repayments, which could potentially increase selling activity within the market. This week alone, Mt. Gox transferred a significant amount to Bitstamp, an action that may have triggered additional selling pressure.
From my perspective as a crypto investor, it seems that there aren’t any immediate bullish triggers for Bitcoin at this moment. Just recently, a major banking institution like JPMorgan has cautioned its clients against rushing into Bitcoin purchases following its recent price increase. They suggest that Bitcoin might encounter strong resistance in the upcoming months.
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2024-08-22 23:10