Bitcoin consolidating within $58K-$68K — will Taproot unleash BTC bulls?

bitcoin looking to breakout on taproot upgrade
“Bitcoin consolidating within $58K-$68K, will Taproot unleash BTC bulls?” Image Friends of Aldinga Scrub via Flickr
  • The BTC/USD pair adopted a consolidation trend within the $58,000 – $68,000 price range.
  • Bitcoin’s most awaited upgrade, Taproot will get activated in a few days.
  • Bullish investors anticipate upside volatility for the top cryptocurrency.

JAIPUR (CoinChapter.com) – Bitcoin sulked into consolidation as the US dollar gained strength over the last few days. The flagship cryptocurrency maintained a range trading stance between $58,000 – $68,000. However, the scenario could change after Taproot, the top blockchain’s most awaited upgrade, activates in a few days.

Related: Bitcoin price eyes explosion to $80K in two weeks, per a 2017 bull run setup

Bitcoin Taproot Upgrade to Tap Bulls?

Taproot, Bitcoin’s most awaited upgrade since 2017’s Segregated Witness update, expects to make the top cryptocurrency network more scalable, secure, private, and programmable, as it, along with Schnorr’s signatures, goes live with block 709,632 on Nov. 16.

The upgrade may end up making Bitcoin a fertile field for executing simple, smart contracts. Plus, it proposes to make Bitcoin transactions more private and difficult to track. MAST (Merkelized Abstract Syntax Tree) scripts will prove instrumental by enabling scripting compressibility on the Bitcoin blockchain.

Currently, BTC transaction verification is pretty tedious. Multiple nodes come together to verify a particular transaction hash for ascertaining the genuineness of a transfer. MAST scripts, on the other hand, minimize the information required for the same.

“MAST scripts compress the code into conditional paths, and only transfer to the blockchain the condition of the code that was met, rather than the entirety of the content. Put simply, MAST scripts are a type of cryptographic compression that shrinks executable code into a single root value in order to save space when this data is transferred throughout the network.Through use of this method of script tree compression, MAST scripts both save space and promote privacy.”

wrote Seeking Alpha cryptocurrency contributor Stephen Tuttle
MAST roots will eliminate transactions inefficiencies on Bitcoin
MAST roots will eliminate transactions inefficiencies on Bitcoin. Source: Stephen Tuttle/Seeking Alpha

Together, leveraging these features, developers stand to create extensive Bitcoin applications. End-users, on the other hand, can benefit from cheaper and more private BTC transactions.

What Does This Mean For BTC?

Long-term investors assessed the impact of the Taproot upgrade on Bitcoin’sBitcoin’s future as a potential utility-based blockchain network. As a result, a consolidation phase ensued, with bullish traders increasing their long positions on the flagship cryptocurrency.

Related: Bitcoin whales return to accumulation as BTC heads for $100K-target by year's end

Analysts and crypto market observers insinuated further upside moves for the BTC/USD pair on account of the impending Taproot upgrade.

“Spot U.S. Bitcoin ETF decision deadline and Taproot activation date is the same day. Mind blown.”

said Gabor Gurbacs, director at VanEck/MVIS

“Don’t forget

Incredible #Bitcoin ETF volumes today

Highest inflation in 30 years

Taproot upgrade in 3 days”

noted Capriole Investments founder Charles Edwards

“- JPMorgan: “BTC could hit $146k and is acting like digital gold”

– PayPal co-founder Peter Thiel: “I underestimated Bitcoin”

– New York City mayor Eric Adams gets his first 3 paychecks in BTC

– BTC Spot ETF could be approved soon

– Taproot activating on November 16″

pointed out Raphael Schön

BTC/USD Price Technical Setup

Recent selloffs pushed BTC’s price down into the oversold territory. In technical terms, the greatest digital asset’s relative strength index (RSI) touched 40. Any RSI figure below 50 is a welcome sign for buyers, and in fact, they have started showing up already, as per the latest action on the 4-hour BTC/USD price chart.

BTC/USD pair aims for $75,000
BTC/USD pair aims for $75,000. Source: BTCUSD on TradingView.com

$60,000 still provides solid support for bearish downturns, but ongoing market momentum indicates that the possibility of a drop to the said price is bleak. Bulls now anticipate a breakout beyond $69,000 to $72,000, and then to $75,000, as the Taproot upgrade day nears.

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