Bitcoin (BTC) has been gaining momentum in the crypto world lately, crossing the $60,000 mark contrary to signals from several analysts. The world’s leading cryptocurrency has had a wild ride, with its price fluctuations getting jumbled over the past few weeks.

Bullish factors driving the Bitcoin price

A key driver of Bitcoin’s recent price surge is the belief that a spot Bitcoin ETF is likely to be approved by the SEC. Given the immense anticipation of such a decision by the SEC, which will likely finally open the door for increased institutional investment in the cryptocurrency, many investors are risking entry at current levels.

Another factor that pushed up the Bitcoin price was the reduction in the supply of new BTC after the halving in the second half of 2024. In general, Bitcoin prices have increased several times after the halving because the lower supply directly correlates with higher demand and a higher price.

Bitcoin’s 200-week moving average offers strong support

Blockstream CEO Adam Back stated that Bitcoin’s 200-week moving average has risen above $38,000, a level that now provides solid support for the cryptocurrency. In fact, the 200MA has repeatedly been considered one of the most important indicators in Bitcoin analysis, as the cryptocurrency never fell below this moving average.

Another telling indicator of fresh Bitcoin gains would be the holding patterns of the asset. According to information from the online site BTCDirect, 69% of the BTC supply has not moved for a year or even more. Of course, another case of decreasing BTC circulating volume helps to further reduce the selling pressure on the asset, supporting 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 past 24 hours, and was up 4.7% over the past seven days, according to data from Coingecko.

Despite Bitcoin’s recent price surge, there are some bearish factors that remain in the background, including Mt. Gox redemptions, which are likely to put further selling pressure on the market. Earlier in the week, the notorious exchange made another massive transfer to Bitstamp, potentially triggering selling pressure.

Other bearish factors include the lack of obvious short-term upside for Bitcoin, with banking giant JPMorgan’s recent statement saying, “I advise my clients to be very cautious before investing in Bitcoin’s recent price rally as the cryptocurrency is likely to face headwinds over the next few months.”

Featured image by Pexels, chart by TradingView