FX.co ★ Technical Analysis of BTC/USD for November 15, 2021

Crypto Industry Outlook:

The Bitcoin network has made history once again with the Taproot update launched at block 709.632, 5:15 UTC on 14/11/2021.

This rollover is a milestone for Bitcoin, considering Taproot is the first significant upgrade to the network since August 2017 following Lightning Network and Segregated Witness updates.

While SegWit and the Lightning Network focus on faster and cheaper transactions, Taproot does much more than just improve scalability and reduce fees. The latest update is intended to increase the privacy and security of the protocol.

Taproot introduces Schnorr signatures to reduce some network load while increasing simplicity, efficiency and security. Creates a key type that summarizes a set of signatures into one. This makes it much easier, faster and cheaper to carry out transactions with multiple signatures (UTXI).

Additionally, Taproot aims to improve Bitcoin's scripting language through the Merkelized Abstract Syntax Tree concept. This opens the door to smart contracts online, leading to even greater adaptation.

Technical Market Outlook

The BTC/USD pair continue the impulsive wave to the upside after the pull-back to the level of $62,233. Bulls had hit the 127% Fibonacci projection located at the level of $$68,267 and made a new ATH at the level of $68,995 then the pull-back happened. The next big target for BTC is seen at $70,000, but the first target for the wave 5 is located at $70,508. The momentum is strong and positive, which supports the short-term bullish outlook for BTC. The nearest technical support is seen at the level of $65,556.

Weekly Pivot Points:

WR3 - $74,186

WR2 - $71,563

WR1 - $67,476

Weekly Pivot - $68,414

WS1 - $60,726

WS2 - $58,026

WS3 - $54,090

Trading Outlook:

According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).