Bitcoin followers finally have something to celebrate. Thanks to the Taproot upgrade. Taproot upgrade was activated at block 709,632 on November 4, 2021.
Now, it allows faster and cheaper transaction fees, greater transaction privacy, and efficiency. However, the most interesting part of this upgrade is unlocking the smart contract potential.
Experts have predicted that BTC may surpass $100K in the next year and cross $70 this month. However, Bitcoin is consolidating in the range of $64k to $66k.
With the strong performance, BTC has become the best inflation hedge in 2021, especially during the pandemic, people rely on Bitcoin. Many institutional investors also showed interest in this coin.
However, there is bad news for Bitcoin. SEC rejected the first Bitcoin spot ETF. We hope it will be approved soon, and we can observe a rally in the prices of the crypto market.
When writing this article, Bitcoin is trading at $61K and showing a sign of short-term consolidation. It is struck around $63K. Will it cross its ATH? Definitely yes, it may cross it in the near term. Now, Bitcoin is in the initial support level around $60K. It may slip down to $56K. Indeed, that would be a great time to buy more coins.
During the first half of this year, it made a similar chart pattern. Definitely, it will not repeat the same thing, but it is a clear indication that BTC is in a short-term consolidation phase.
On the daily chart, the RSI is stable at 55, MACD is bearish. Analyzing the MACD chart, we can easily say that it has taken a bearish reversal at least for a month.
Today’s candlestick has broken the moving average line and is coming down to its initial support level, which is also a signal of short-term bearishness.
The Bollinger Band also reflects the bearish sign because the last red candlestick is in the lower half of BB and has broken the baseline. Indeed, it will not take a bullish turn, at least for this week.
On the weekly chart, you can observe a bearish reversal, and the price of Bitcoin may fall up to $56k and touch the Moving Average line. Though MACD is bullish on the weekly chart, we should still observe the price changes very closely.
It made a similar ATH during the second week of February and went through an eight-month-long consolidation period. The BTC price fell sharply in MAY. Now it is interesting to watch the direction of Bitcoin after making a new ATH this month. In short, the BTC price may slip down to $56K, but that will be a new beginning of another bullish run as per the Bitcoin price forecast.
Is it the right time to buy this coin? We think it is the right time to buy because great news will be coming for Bitcoin next year; the price will surge up to $100K. Investors can invest or wait for a few weeks to get a bullish sign.