Privacy-Focused BTC Taproot Upgrade Goes Live As Technical Warning Signs Emerge

5 min readNov 15, 2021

The Bitcoin Taproot upgrade is live and opens up a new epoch for bitcoin development with a greater focus on privacy. Soon, Litecoin will follow suit with its MimbleWimble implementation as the sound money trend gains steam in reaction to rogue governments on steroids.

Meanwhile, BTC/USD remains trapped within a range as several technical warning signs emerge which beg the question: is it a good time to leverage long bitcoin?

Let’s dig in.

Taproot, Bitcoin’s Privacy-Focused Upgrade Activates

The much anticipated Bitcoin upgrade, Taproot, was activated this weekend on block 709,632, opening the door for developers to integrate privacy, scalability and security features on the network.

Check out the full article here!

Technically speaking

Bitcoin Ranges at all Time High Territory

After deviating out of the range and coming within an arms length of the $70,000 psychological level last week, bitcoin retraced to the S/R pivot point where buyers stepped in. $62,300 marked the low for the session and BTC/USD is currently facing selling pressure at the top of range.

However, bulls saved the weekly candle last night, closing the week off at $65,400 in a last hurrah before the figurative bell toll.

Despite this bullish resolve, the daily relative strength (RSI) index has printed a bearish divergence. Such divergences occur when prices trend higher on declining momentum, which suggests a higher probability for a correction on that time-frame. As with most indicators, the RSI must be considered in context, and price-action is the primary indicator.

Trading at $65,736 at the time of writing, BTC/USD is less than 5% away from all time highs. If a volume-supported thrust above $70,000 materializes, this would nullify the probable consequences of the bearish divergence.

Technically, BTC/USD is also trending within a rising wedge structure, which is very similar to the pattern witnessed during the February-April rally. Still, the past is no guarantee of future performance, but given this information the risk is greater than usual to open fresh leveraged long positions.

If $62,900 fails to hold as support, then one can expect a bounce at $59,000. However, this could be short lived as the technical target for a breakdown is the bottom of the wedge at $52,900.

On the flipside, the sky is the limit above $70,000. Bitcoin could enter its final parabolic run up to a $100,000 and beyond in a matter of days. Bulls have no need to rush an all time high parabola, however.

For this scenario, it’s worth switching tool kits, especially since volatility would increase dramatically.

Judging by its current trajectory, the Bitcoin Power Law Corridor suggests that an impulsive move to all time highs could take Bitcoin to $115,000 in a blow-off-top scenario.

On-chain data such as the MVRV-Z score and the net unrealised profit/loss both indicate significant upside potential. To avoid the clutter, we’ll only look at the mvrv-z score.

A score above 7 indicates bitcoin prices are at long-term tops, while a score below 0 suggests prices are at macro bottoms. Currently, the mvrv-z score is at 3.9, which strongly suggests that higher prices are probable.

A final note

On a separate note, I’ve been thinking about the possibility of an exponential bitcoin run-up coinciding with a total collapse of the scare-mongering corona-virus narrative, which has gone into overdrive for nearly two years with no end in sight. Austria has ordered locking down unvaccinated people in their homes, despite the fact that the vaccine doesn’t stop the spread and actually causes break-through cases and variants. Besides the clear human rights violation, the logic just isn’t there and this short note is just the tip of the iceberg.

Millions of people around the Western world (France, Italy, Australia, USA, UK, Germany, Belgium, New Zealand and many others) have been protesting draconian mandates by rogue governments for months, and the cracks in the walls are turning into crevasses. Policy-makers have transitioned from clueless politicians to thugs in suits, at best.

For the most part, local and international media hasn’t reported on the human rights abuses that have taken place since the start of lockdown policies. But it’s only a matter of time before the narrative collapses in on itself, and I can’t help but wonder if Bitcoin will be the reckoning that ultimately defunds these unhinged politicians in suits.

Time will tell.

Catch you later.

p.s. This is my opinion. It is not financial advice.

Join the Telegram channel for live updates & setups!
Follow me on Twitter & Gab and my social portals below.