Cryptocurrencies have surged, with Bitcoin (BTC) approaching $60,000, buoyed by strong gains in traditional markets.

Bitcoin fell 1% to $57,600 earlier in the day after software giant MicroStrategy announced it had purchased 18,300 BTC for $1.1 billion. However, BTC quickly recovered and is trading at $60,034, up 3.4% in the past 24 hours.

The second-largest cryptocurrency, Ethereum (ETH), also performed strongly, reclaiming the $2,400 level with a 2.7% gain. According to crypto analytics firm IntoTheBlock, Ethereum’s network activity has increased significantly, with revenues from transaction fees increasing by nearly 60% in the past week.

According to prominent trader and analyst Bob Loukas, Bitcoin’s rally could have more upside potential. Using the cycle theory of technical analysis, Loukas suggested that Bitcoin’s recent price action points to more gains ahead. Sharing a chart on X (formerly Twitter), Loukas suggested that Bitcoin found a local bottom below $53,000 on September 6 and is currently in the seventh day of a new up cycle. The previous cycle lasted more than 60 days, with the peak occurring on day 24, suggesting that Bitcoin has time to make new highs before a potential pullback.

“These cycles have time left and should remain strong heading into the FOMC meeting,” Loukas said.

But not all experts are optimistic. Crypto investment firm Ryze Labs warned in a report on Friday that concerns about a possible recession could still weigh on the market. “The key variable here is the state of the U.S. economy,” the report said. “If the economy remains resilient and avoids a recession, risk assets are likely to continue their upward trajectory. Otherwise, we’re in for a bumpy ride.”

*This is not investment advice.