The cryptocurrency market has recently exploded, with one cryptocurrency — Bitcoin (BTC) — leading the charge. After suffering through turbulence for the larger part of the last 60 days, the flagship cryptocurrency has demonstrated a strong level of recovery, even breaking through its 200-day moving average earlier this month, implying that a move to the $50,000 psychological barrier is imminent.

To put things into perspective, BTC has gained more than 55 percent in the previous month alone, helping to push the overall market capitalisation of this relatively new area back above the $2 trillion level. These surprising results can be attributed in large part to the greater institutional acceptance seen in this business in recent years.

Some of Bitcoin's most important institutional backers in this regard are Michael Saylor's Microstrategy, EV manufacturer Tesla, and crypto-focused investment firms Galaxy Digital Holdings and Voyager Digital. Furthermore, a number of traditional banking institutions have recently entered the crypto fight. Wells Fargo, one of the oldest banks in the United States, is the most recent addition to a growing list of financial organisations offering their rich clientele indirect exposure to Bitcoin.

JPMorgan, BNY Mellon, Morgan Stanley, Bank of America, and Goldman Sachs are among the other big financial organisations that provide a variety of crypto-focused financial solutions.

Finally, according to recent SEC filings, a growing number of wealth management firms, including Illinois-based Clear Perspective Advisors and Ohio-based Ancora Advisors, have been acquiring sizeable sums of Grayscale's Bitcoin Investment Trust (GBTC) shares, indicating a growing demand for the asset among institutional players.

What can we expect?

Iqbal Gandham, VP of Transactions for security and infrastructure solutions provider Ledger, told Cointelegraph that when crossing significant price milestones, such as the one we are witnessing now, there is always a pause — much like the one we are witnessing now — so that the market can stabilise:

“The longer we keep it here, the more people will come out in support of it. In terms of the elements driving this run, I believe it will be psychological rather than news-driven. People are simply looking for a trend, therefore even minor positive news could lead the price to rise rapidly. It's no longer a question of if, but of when.”

Daniele Bernardi, CEO of fintech management firm Diaman Group, told Cointelegraph that his firm's own indicators all point to BTC's near-term growth. However, in his opinion, the next wave of optimistic market growth will be led by alt-assets like as Ether (ETH), Cardano (ADA), and Binance Coin, rather than Bitcoin (BNB).

“In my opinion, it is actually more necessary to focus on cryptocurrencies for a bit. “We can expect Bitcoin's supremacy to wane for a few months,” he predicted.

Finally, according to Talal Tabbaa, chairman and co-founder of CoinMENA, an FTX-backed Middle Eastern cryptocurrency exchange, while Bitcoin may trade at $50,000 in the next days, such short-term price action is completely unimportant in the larger scheme of things:

“Technical analysis has limitations and should not be utilised as the main basis for decision making.” I truly think it's insane that some individuals believe they can foresee the future by drawing lines on a chart. Macro events, such as China's mining ban or the US potentially legalising ETFs, will have far greater impacts on Bitcoin's short-term moves than any technical analysis.”

A Bitcoin “gold cross” has been observed, indicating strong near-term market activity.

Despite some ambiguity about where the crypto sector is headed in the coming months, there is enough data to suggest that the market is poised for another bull run in the short future. In this context, Glassnode, a blockchain analytics platform, recently announced that a “golden cross” pattern — between the 30-day and 60-day moving averages of Bitcoin's hash ribbon — had just been detected.

When an asset's short-term average value exceeds its long-term average value, a golden cross is formed. The comparison of BTC's 30- and 60-day hash ribbons, reveals that trading volumes are on the rise once more. It is also worth noting that the identical shape was observed prior to Bitcoin rallies in January 2019 and 2020, as well as March and December 2020.

Finally, Glassnode's claimed hash rate shows that miners who were forced to relocate their operations from China due to the country's recent regulatory tightening may have finally established their bases elsewhere. In this regard, it should be recalled that five North American mining operators — Marathon Digital, Riot Blockchain, Bitfarm, Argo Blockchain, and Hut8 — claimed a 58 percent rise in operating output just over a fortnight ago.

Other elements influencing Bitcoin's price behaviour

Elon Musk has changed his mind on Bitcoin after slamming it earlier this year for its negative environmental impact, giving investors who listen to the Dogefather's every word even more reason to be bullish on the cryptocurrency. Furthermore, Twitter CEO Jack Dorsey and Ark Invest's Cathie Wood recently announced their long-term commitment in the premier cryptocurrency.

A spokeswoman for cryptocurrency exchange Bitstamp informed Cointelegraph that the number of active retail female investors has increased by more than 24 percent in the previous six months, indicating that BTC is becoming more popular.

“The share of Bitstamp trading volume generated by female investors has climbed by an astounding 58 percent in that same time period, indicating a surge of new investors interested in cryptocurrencies.”

Finally, with a growing number of countries — most notably El Salvador — beginning to implement various measures to recognise and regulate the crypto market, it will be interesting to see how the next few days play out for Bitcoin, especially given the current market sentiment, which appears to be overwhelmingly positive.

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