Weekly Technical Overview: Bitcoin Accumulation Continues: New All-Time Highs Anticipated

2021/11/15 10:11:49

The Bitcoin market has finally gotten back to its highs after holding at the recent lows for over five months. The market that had brought the hopes down of investors in May has eventually made a move such that it has regained the trust.

With the ongoing bull run, Bitcoin has proved that the sell-off that came in earlier this year, washing out about 50% of the market cap, was only a recent for the buyers to continue with their subsequent impulsive push.

In contrast, altcoins had a trajectory of their own. Ethereum, to an extent, followed the price action of Bitcoin. But at the same time, other altcoins were trading at their lows, slowly inching to their highs, or strongly breaking through the ATH. But the majority remained as laggards in comparison to Bitcoin cryptocurrency.

As of date, Bitcoin is still around the ATH highs and gradually climbing, while altcoins are approaching the same levels. Consequently, the entire cryptocurrency market has finally begun to move in sync with each other.

Bitcoin to Undergo Taproot Upgrade

According to statistics from Taproot.watch, Bitcoin underwent a major network update on November 14. This is the first major upgrade since the Segregated Witness (SegWit) project, which led to the creation and deployment of the Lightning Network in 2018. On January 23, 2018, Bitcoin core developer and former Blockstream chief training officer Gregory Maxwell made the initial Taproot proposal.

The previous SegWit upgrade attempted to fix transaction mutability and increase the capacity of the Bitcoin network, but the Taproot update aims to improve transaction efficiency, network privacy, and the network's capacity to sustain smart contract efforts. On June 12, Bitcoin developer Hampus Sjöberg reported on Twitter that the update had been completed after achieving a 90% consensus among Bitcoin mining nodes. Sjöberg also created the Taproot.watch website to keep track of the Taproot upgrade's upgrades.

Bitcoin Overall Price Update

The price movement of Bitcoin has been rather interesting on the bigger picture and trend. Although the Bitcoin cryptocurrency has stabilized with a market cap hitting the trillion-dollar mark, the volatility of the market is still higher when compared to traditional markets.

Ever since the BTC market took a dip in May 2021, the price action has been quite aggressive on both sides. As a result, the level between $30,000 and $40,000 turns out to be a massive psychological demand.

As the original trend took off in late July, the bullish moves averaged at 3 percent per day. In a matter of a couple of months or so, Bitcoin rose over 75% to reach the $50k mark. The price action from $50,000, however, was quite slow, as the market found hurdles every step of the way to the upside. Nonetheless, the Bitcoin market did manage to reach the $60,000 mark after the bull push began in October.

Coming to the current price update of BTC crypto, there has been no significant moves in either direction. The market did make a new ATH at $68,952 but is still close to its previous ATH, which was set at the beginning of this year. To put it into perspective, the prices have been hovering sideways between $60,000 and $67,000 for a month now.

Bitcoin Technicals Unfolded

It is no doubt that the Bitcoin market has gotten back into the buyers’ hands. After a long-held consolidation in the months of June and July, the prices have resumed with their predominant uptrend. The trajectory is not simply bullish candles heading higher but a strong typical uptrend with higher highs and higher lows.

Looking at the momentum of the buyers on the way up, it is ascertained that the bulls got stronger as the market approached higher levels. In essence, the market started off pretty weak when it breached the $42,000 mark. In fact, the sellers almost took ground after the price hit the $50,000 mark. But later, the move turned out to be only a retracement for the buyers to make their next move. As a result, the buyers continued with their bullish impulsive push to reach the ATH levels.

But ever since the new ATH was established by Bitcoin, there has been no major surge in prices. It has been over 30 days, and the prices are still hovering at the same levels.

Bitcoin Price Chart on the Daily Timeframe | Source: BTC/USDT

Zooming into the current price action, it is observed that the market has gone into a range with a lower bound as $60,000 and upper bound as $67,000. Although a ranging market indicates strength coming from both sides, it can be seen that the moves by the buyers stand much stronger than the sellers.

Bitcoin Price Chart on the 4-Hour Timeframe | Source: BTC/USDT

The bias still remains on the buy side, even if a temporary deeper retracement shows up in the coming days. Having that said, the next ATH is bound to happen before the year ends, and both fundamental and technical analysis supports this statement.

Stay tuned and watch the KuCoin Blog for more interesting educational crypto content. All the best!

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