The price of Bitcoin has increased slightly without bullish determination but has remained above USD 63,710. Although Taproot did not inject optimism into the market of the pioneering cryptocurrency, the dominant bullish force could surprise the community.
The Taproot update of the Bitcoin network is now online after almost three years of waiting. However, the price of the crypto asset has not reacted optimistically to this momentous news.
BTC is trading at around USD 64,000 and has accumulated a 1.7% loss in the last 24 hours. Its trading volume is above USD 32 billion, and its market capitalization is about USD 1.2 trillion, according to CoinGecko.
Taproot Seeks to Correct the Current Structure of Bitcoin
Throughout its history, the fundamental structure of Bitcoin has undergone several stages of slight changes for the better. On this occasion, the cryptocurrency is undergoing an update process to optimize the BTC scripting language and signatures.
That update came a long way before its launch since its developers proposed it in 2018. Its goal is to enable more private, efficient, and cheap transactions, besides creating a flexible framework for developing smart contracts.
That process, called Taproot, will bring corrections to the structure of Bitcoin, including the scalability factor. The soft fork will have to face the problem of complex transactions, which are very easy to track, and the limitation of scalability in the small blocks.
The Bitcoin network update occurred on November 14th when F2pool mined block 709,632.
The Price of Bitcoin After the Activation of Taproot
The daily chart indicates that the price of Bitcoin has risen slightly but has not shown bullish determination yet. However, it has remained above relevant support, close to USD 63,710. Before that, it made a pullback with much less force than the previous bullish momentum.
As the short-term trend has remained bullish, new momentum will probably start from the current price point.
The price of Bitcoin must break through the support at USD 63,710 before thinking that the bears will drag it lower. Until that happens, buyers will continue to control the market.
The Forecast of the Price of Bitcoin for the Coming Week
The weekly candlestick chart reveals that the price of Bitcoin has been somewhat dormant. The Taproot update failed to inject optimism into the market of the pioneering cryptocurrency. However, the dominant bullish force could surprise the community in the next few hours.
The value of Bitcoin is still trying to escape into uncharted terrain, so the volatility to the upside could increase rapidly. Despite that, new all-time highs are still likely to occur in the coming week.
Before thinking of a broader correction, the price must first lose its support at USD 60,200. Even if that happened, buyers might not let the decline remain too long.
The first cryptocurrency on the market plays an increasingly relevant role in the world’s economic system. For that reason, the community patiently waited for an update enabling more effective transactions and improved security.
Even though the price of Bitcoin did not rise much after the activation of Taproot, it will continue growing. It is just a matter of a few days or weeks before it hits a new all-time high.
By Alexander Salazar
