Forex Analysis & Reviews: 15.11.2021 - Bitcoin Resumes Upward...

15.11.2021 04:47 PM

Bitcoin Resumes Upward Movement Amid Successful Taproot Upgrade: When To Expect New Historic Highs

After a week of uncertainty caused by excessive activity of speculative players and increased correlation with the dollar, bitcoin is once again on the rails of an upward movement. The important factors in such a rapid recovery of quotes are the retention of the support zone at $60,200, as well as the successful implementation of the Taproot upgrade, which the market has been expecting for more than six months.

The importance of the Taproot upgrade for users is reflected in the Daily Active Addresses on-chain metric, according to which an upward trend in the number of unique users of the cryptocurrency network was observed on the eve of the update. At peak times, the indicator reached 1.14 million addresses.

The upgrade was successful, as reported by the developers on Twitter. As part of the upgrade, the throughput of the bitcoin network was significantly increased, as well as the cost of transaction costs.

In addition, the security system of the main network has been redesigned: the level of privacy has increased and the likelihood of spam attacks is significantly reduced, which makes the network more resilient. In the context of the impending peak of the bull market, this will play an important role in the stability of the network and the systematic growth of quotes.

The key feature of Taproot is the efficiency of complex smart contracts, which have long been a problem with the Bitcoin network.

Thanks to the successful upgrade, the coin survived the drop in trading activity over the weekend relatively calmly and remained in safe positions. The coin began the new trading week by overcoming a narrow range of fluctuations and reaching the $66,000 mark, which is a bottom before the zone of a powerful upward impulse.

In addition, the complexity of Bitcoin mining has increased by another 5% over the past week, which is one step closer to the peak values of mid-April 2021. All these factors informally and technically contribute to the growth of quotes of the first cryptocurrency, and therefore in the near future, we should expect an update of historical highs.

Globally, the nearest target is located in the area of $75,000, as indicated by the global figure of the technical analysis "cup and handle," the potential of which is calculated within the indicated areas and should be achieved following the results of the fifth bullish wave of bitcoin.

Meanwhile, with a narrower analysis of the daily timeframe of bitcoin, you can see the obvious uncertainty of the market, which is reflected in the formation of Doji candles. On the one hand, this can be associated with the decreased activity over the weekend, but on the other hand, it emphasizes the likelihood of price movement both downward and upward.

Having drawn the Fibonacci level, you can see that the price is now hitting a complex resistance zone, and with its bullish breakdown, a path opens up in the direction of $75,000.

Taking into account the approximately equal strengths of bulls and bears on the weekend, you can bet on further upward price movement. First of all, this is indicated by the fundamental positive news background and the recent Taproot upgrade, which further fueled the market's interest in buying.

Moreover, a "bullish pennant" pattern has formed on the daily chart, the potential of which is also calculated to move above $74,000 and the market has already started working on it.

BTC technical indicators signal growing strength of long-term upward momentum. Despite the flat movement from MACD, the Stochastic Oscillator has formed a bullish crossover and is moving towards 70. A similar trend is shown by the RSI index, which indicates bullish initiative and further upward price movement.

At the end of today, Bitcoin may well touch the $67,500 mark, and in the event of a rebound from it, it will meet support near the previous all-time high in the $64,200 region. On a weekly basis, Bitcoin growth is calculated based on the potential of bullish patterns on the charts and movement along Fibo levels. The main catalyst for the asset's growth to new highs will be a breakdown and consolidation above the level of $67,300.