After almost three years of waiting, the Bitcoin Taproot update is finally online, but the price is not reacting to this news with any positivity.
At the time of this writing, BTC is trading at $ 64,265.07, accumulating a slight loss of 0.72% in the last 24 hours.
Could we see a major price rally soon? Let’s find out below.
A little about Taproot
Proposed in 2018, it is an update that has come a long way before being launched, and aims to introduce several interesting improvements to the network, which in conclusion seek to provide better tools so that transactions are more private, efficient and economical, to while creating a slightly more flexible framework for the development of smart contracts.
To learn more about what this update is about, check out the following article.
The update was activated at dawn on Sunday, November 14, exactly in block 709,632, mined by F2pool.
Let’s now see how the price has been reacting to this event, and what we could expect from it in the coming days.
Technical analysis of the price of Bitcoin, after being activated Taproot
On the daily chart we see the price quite asleep, rising slightly, but still without any bullish determination.
However, it should be noted that the price was parked on a relevant support, close to $ 63,710, after making a setback that has a much lower strength than the previous upward momentum.
The short-term trend is still bullish, so a new momentum is likely to start from where the price is currently.
To think that the bears are going to drag the price lower, the support at $ 63,710 must be crossed. Until that happens, buyers will remain in control.
Forecast for next week
In the weekly candle chart we see how the price of Bitcoin has been quite asleep, despite the positivism that the Taproot update could inject.
However, there is still a totally dominant bullish force, which could well surprise us in the next few hours.
The price is still trying to effectively escape into uncharted territory, and when that happens, volatility to the upside could increase rapidly.
For now, it is still more likely that we will see new all-time highs in the coming week.
To think that a broader correction is going to occur, support at $ 60,200 must be lost. Even with this happening, buyers are unlikely to let the decline last too long.
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