The Bitcoin technical charts suggest that BTC is heading for $90K levels but might witness a shake-off before that. The recent Taproot upgrade to the Bitcoin blockchain can fuel further rally.
Earlier this month, the world’s largest cryptocurrency Bitcoin (BTC) experienced a powerful rally to $67,000 hitting a new all-time high. However, the BTC price has been moving sideways since then and has remained under pressure.
But over the last weekend, Bitcoin bulls have been gaining enough strength bringing the Bitcoin price close to $66,000 once again. As of press time, Bitcoin is trading at $65,755 with a market cap of $1.244 trillion.
Bitcoin technical charts are showing strength as the world’s largest cryptocurrency prepares for the next leg of the rally all the way up to $90K. Trading platform Decentrader notes that Bitcoin is all set for the next rally post the recent and most important Taproot upgrade.
Bitcoin Sentiment Stays Bullish: Further BTC Rally Ahead
Last week, the Bitcoin price dropped more than $4000 on November 10 with the bears taking the charge. But analysts don’t see it as a sign of worry and note that the bearish sentiment remains intact.
The short-term volatility resulted in major liquidations for leverage long traders. However, the funding rates still remain high. Decentrader says that one can avoid fresh entries as HODLers might be in for more pain before the rally begins. But it is confident that once this happens, new all-time highs will appear once again backed by volume buying. In its official report, Decentrader noted:
“We remain bullish on high time frames and continue to expect the price to rally up to the $85,000 –$90,000 region in the coming weeks, which aligns with the 1.618 fib retracement level”.
Along with the target, Decentrader has also mentioned the nearby support levels. The nearest support levels in focus are $59,000. Also, comparing with the historical BTC price rallies post halving, Decentrader noted:
“When we compare this cycle from the most recent halving date to previous cycles, we can see that so far we have not experienced a final parabolic run-up”.
Although not entirely identical with the previous bull runs of 2013-2017, Bitcoin is still laying the foundations for a “parabolic bull run”. The update noted that “when we overlay the cycles like this, we can see how the current cycle is not directly like either of the previous cycles but is in fact a combination of the two. With a more muted potential double-top playing out compared to 2013, and less consistency than 2017″.
“As we attempt to break out of the previous all-time high from May this year, it is setting up the prospect of a potential parabolic run-up as we saw in the late stages of the previous bull runs,” said it.
Comparing Taproot to Segwit
Before the mega bull run of December 2017, the Bitcoin blockchain had undergone the Segwit upgrade in the August of the same year. This major protocol upgrade provided the much-needed bull support for the Bitcoin price to rally. Post the launch of SegWit, Bitcoin touched a high of $20,000 later that year.
There’s a possibility of a similar rally this year says Decentrader. “Will we see a similar rally this time around? Given how bullish many macro indicators are looking right now, and the rush of new money entering crypto, it is certainly possible,” it notes.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.