Bitcoin is off to a great start this week after rallying as high as $39,799 on Monday morning thanks to a strong bullish wave sweeping across the crypto markets.

Bitcoin is currently trading at $38,799 after gaining by 13.09% in the last 24 hours and has so far recovered by 25.85% from its July low of $29,278. Its price crossed the $39,000 mark today for the first time since mid-June, which suggests that the FUD which held it back might finally be over. Bitcoin’s price action is currently closing in on the 99-day moving average, indicating strong momentum.

 Source: Binance

Is the ongoing bullishness here to stay?

Bitcoin’s price action is highly volatile and so is the rest of the crypto market. This means that prices may move up if there is a strong enough catalyst or they may tumble by huge margins if there is a lot of FUD-inducing news. Right now Bitcoin’s technical performance highlights a lot of buying volume which is responsible for the strong price uptick. The high level of volatility might fuel a rally today and a huge price crash a day later.

BTC is back above the 7-day and 25-day moving averages, reflecting the prevailing bullishness and it is also rapidly approaching the 99-day moving average. A crossing of this technical indicator from below would be a sign that the cryptocurrency might be in its second bullish phase and an end to the price correction that has been going on since May.

What is causing Bitcoin’s current price surge?

There are multiple factors influencing Bitcoin’s current rally, and Elon Musk is unsurprisingly one of them. The Tesla CEO noted last week that his company would resume accepting Bitcoin as payment for EV purchase, as soon as enough research is conducted on the cryptocurrency’s energy usage. Tesla started accepting Bitcoin earlier this year but decided to stop in May due to concerns that a huge proportion of Bitcoin mining was powered by fossil fuels, thus contributing to global warming.

Musk’s comments about Bitcoin have had a huge impact on Bitcoin’s price performance in the past and it looks like not much has changed. The price of Bitcoin has been bullish since the recent statement. Elon did not reveal the exact date that the company will resume accepting BTC as payment for vehicle purchases, but current estimates suggest that it will happen before the end of the year. The statement was seen as positive news for the market because Tesla is one of the most influential companies in the world. It might potentially encourage other companies to adopt BTC.

Tesla is not the only catalyst fueling Bitcoin’s rally. Twitter CEO Jack Dorsey recently noted that the cryptocurrency will play a big role in his company’s future. E-commerce giant Amazon is also reportedly planning to embrace Bitcoin payments before the end of 2021. Three positive major announcements by tech companies with regards to Bitcoin within the same week are enough to yield a major price change. If major companies start accepting Bitcoin payments, then the cryptocurrency will likely achieve a higher market cap which means its price could potentially reach the predicted $100,000 in the not so distant future.

The recent catalysts may also have liquidated some shorts executed on the expectations that recent crypto crackdowns would continue pushing down the price.  The short sellers were likely forced to buy so they can recover some of their losses on the uptrend. Although BTC is currently looking green, it is still highly volatile and could potentially experience another FUD-induced crash if some unfavorable market events develop, thus the need to exercise caution.