Crypto Industry Outlook:
Real-world use cases are one of the major adoption factors for any crypto ecosystem, as well as the Bitcoin network. The Bitcoin protocol will undergo a soft fork in the form of a Taproot update over the next seven days, which aims to improve privacy, efficiency, and the possibility of smart contracts on the network.
Taproot is the first major Bitcoin update since August 2017, when Segregated Witness (SegWit) was introduced, which resulted in the launch of the Lightning Network. While the previous fork was primarily aimed at repairing transaction plasticity and improving the scalability of the Bitcoin network, the Taproot update aims to improve transaction efficiency, privacy and support smart contract initiatives.
The Taproot update has been prepared so that it will be implemented after reaching 90% of the consensus among Bitcoin miners (mining nodes).
The Taproot soft fork will enable the introduction of the Merkelized Abstract Syntax Tree (MAST), which introduces a condition that allows the sender and recipient to sign a settlement transaction together.
In addition, Taproot will also implement Schnorr Signature, an algorithm that will allow users to combine multiple signatures into one for one transaction, reducing the visible difference between regular and multi-signature transactions.
Technical Market Outlook
The BTC/USD pair continues the impulsive wave to the upside, made a new ATH and is currently moving above the 127% Fibonacci projection located at the level of $68,267. The next target for bulls is seen at the level of $70,000. 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 $66,874.
Weekly Pivot Points:
WR3 - $66,979
WR2 - $67,182
WR1 - $65,171
Weekly Pivot - $62,254
WS1 - $60,269
WS2 - $57,180
WS3 - $55,878
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. The next mid-term target is seen at the level of $66,974 (the previous ATH level). This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
