Bitcoin crossed above the $47,000 price level on Friday for the first time since May, further confirming its strong bullish momentum and recovery after a bearish phase that started three months ago.

Bitcoin peaked at $48,059 on Saturday from the bullish momentum it registered the previous day but it has since then experienced some recovery. It is currently trading at $47,554 after a 3.66% rally in the last 24 hours and its weekly performance stats suggest that it is up by 4.09% in the last 7 days at its current price level.

Source: Binance

The volume indicator suggests that there has been some selling in the last few days but the selling volume has been declining and the fact that the RSI is still not in the overbought region suggests some more potential upside. Bitcoin’s performance in the last 7 days was strong enough to push the global crypto market cap back above the $2 trillion price level for the first time in 3 months. Bitcoin’s current price level is an indicator that it has so far rallied by more than $17,000 in less than four weeks considering that it dropped below $30,000.

What is causing Bitcoin’s current rally?

The current bullishness in the crypto market is a combination of numerous factors. So far the biggest influence is a lot of buying by institutions, leading to an overall positive sentiment in the market. This is reflected in the fear and greed index which is currently leaning less on the side of fear and more on the side of greed.

You may have noticed that there has been less negative news about the crypto market lately, thus resulting in less FUD. Investors have consequently become confident about buying cryptocurrencies. The fact that the crypto rally started when Bitcoin traded lower than half its all-time high gave the impression that it was heavily discounted.

Regulatory pressure is one of the reasons why the market was going through a phase of uncertainty but the US Senate recently went on recess after failing to come up with a proper regulatory framework. The recess means the market has a few weeks of no regulatory pressure, thus paving the way for some much-needed recovery. Finally, there is the expectation that the market would regain its bullish trajectory after the end of its market-correction phase which kicked off in May. The recent bullish run suggests that the bulls have regained their momentum.

Where is Bitcoin headed?

The expectations about Bitcoin’s price performance are quite high. Some expect it to test its previous all-time highs while some analysts anticipate a price tag above $100,000. While these expectations may not seem farfetched considering Bitcoin’s scarcity and demand, there is a slew of factors that may impact its ability to reach those levels, especially in the short run. For example, the return of the conversation on regulation might reintroduce FUD. If this happens especially when near the previous highs, it might trigger another major price crash.

On the other hand, favorable regulations may further strengthen its rally, potentially allowing it to reach those forecasted price levels. Few people thought that it would be worth $50,000 a year ago but Bitcoin already surpassed that level in the previous bull run, thus there is a possibility that it will happen again.