Crypto Outlook: 11/15/21 - 11/19/21

November 15, 2021 •
3 min read

Breaking News: New major BTC update! What’s new? What impact on Bitcoin in the short and medium term? Let’s find out in this article.

Bitcoin: Taproot, first major update since SegWit

Since 2017, the year of the last “Segwit” update, Bitcoin has not seen such a big change in its network as the one on November 14th, 2021.

Unlike previous updates, this one is not at all controversial and satisfies the vast majority of investors, as Taproot required the agreement of 90% of the miners participating in Bitcoin’s Proof of Work (PoW) consensus. Each of them had to send a “Bit Signal”, symbolized by a small green pixel, when they validated a block of transactions, to signal their agreement.

What will change in practice? 

Although the technical improvements that Taproot brings would be a bit complex to detail here in a few lines, they will bring very concrete changes to the Bitcoin blockchain network.

Merkelized Abstract Syntax Trees which will significantly improve the confidentiality of Bitcoin transactions.

Schnorr Signatures, which, in a nutshell, is an algorithm that will allow users to combine multiple signatures into one for a single transaction. This will make transactions more discreet.

Taproot will also enable further use of smart contracts on Bitcoin. The update will facilitate the development of complex contracts, such as the decentralised finance (DeFi) contracts popularized by the Ethereum network (ETH).

In short, the Bitcoin blockchain will be greatly optimized for its users, providing them with a range of new possibilities.

What impact do you think this update will have on the BTC price? Will it push Bitcoin towards $70k? 

Here is our technical analysis for educational purposes: 

Remember that trading is only a business of probabilities and that no certainty is possible. A profitable trader executes his technical plan giving him a statistical advantage over the long term and accepts the probabilities of loss that are inevitable!

Bitcoin (BTC/USD): Towards a retest of the ATH?

After a large bullish impulse that resulted in the creation of a new ATH, BTC has retraced to the major technical rebound zone located between $60,000 and $64,000. In case of a significant rejection of this area, BTC could go on to create a new high. 

Other cryptos could also make big moves if you simply look at technical analysis. Here are the moves that could potentially happen this week.

Shib (SHIB/USD): Towards a fall to technical support? 

After its huge bull run and all the euphoria it generated, Shibacoin has entered a correction phase of great magnitude. The price seemed to have broken the short term bearish structure (bearish trendline) but failed to make a sufficient bullish impulse to create a new bullish structure. The price broke and retested the previous consolidation and its support became the resistance of the current bearish move. The price could fall to the next technical support if bullish signs do not manifest themselves with, for example, a reintegration of the consolidation.

Dogecoin (DOGE/USD): On the way to range resistance? 

Doge is stuck in a range with an upper bound (resistance) of $0.35 and a lower bound (support) of $0.20 since the beginning of August. A clear uptrend can be seen since the last major rejection of the range support, and the price has rejected the medium-term uptrend line very recently. The price could break the short term consolidation from the top soon and continue the medium term uptrend to the upper bound of the range ($0.35).

Litecoin (LTC/USD): Retracing to climb higher? 

After its recent major bullish impulse, LTC found a technical resistance that rejected the price. This area has been the starting point for a short-term retracement, which could continue until the next technical support area located between $220 and $232. In case of a significant rejection of this area, the chances of a new bullish impulse could be very interesting. 

Ripple (XRP/USD): Towards a retest of previous highs? 

Since the middle of August, XRP has been contained in a range between the $1.39 resistance and the $0.89 support. The price has been in a medium term uptrend since October 27 and has recently bounced actively on this trend line. The area in which the price is currently located is a major support zone which, in confluence with the uptrend line, could push the price up to the major resistance of $1.39. It is therefore very interesting to watch for a significant rebound from this area this week.

We hope that this article will help you prepare for another week of trading, and that we have helped you to better understand what happened the week before. We put education first and do everything we can to help you progress. 

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Have a great trading week everyone, and thank you for your loyalty.

Please note that these analyses are based on price action elements only and are in no way trading or investment advice.

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