Looking at the universe above and the universe below, the price of Bitcoin is still in an uptrend. Prices are still high up and a bounce off $62,000 may signal a new all-time high.
As reported by Cointelegraph, Bitcoin's bullish sentiment received a minor setback on Nov. 12 after the Securities and Exchange Commission (SEC) rejected VanEck's Bitcoin exchange-traded product that planned to track Bitcoin's spot price.
However, this negative development was followed by the successful activation of the Taproot soft fork on November 13. Bitcoin developer Hampus Sjöberg, who runs a Taproot dedicated website, said the “greatest win” was that Taproot showed that Bitcoin could do network upgrades and that was important for the longevity of the network.
Analysts from Decentrader also pointed out that Bitcoins last major upgrade was the implementation of Segwit in August 2017 and this was followed by a sharp rally from $4,000 to $20,000 in four months.
Could Bitcoin repeat its previous bullish performance following the Taproot upgrade？ Let's take a look at the chart.
The price of Bitcoin reached $69,000, its all-time high, on Nov. 10, according to data received from TradingView. Price fell afterward to $63,000 S & R area, which got broken before price made a new all-time high. The $62,000 price area provided support for the price as it rallied back after trading below the 50 EMA.
The 200 EMA is still far below the price, and this signifies that buyers are still dominating the market.
As price found support at $62,000 and bounced off it, a new all-time high is plausible. Price is presently trading above the 50 EMA, which was used as support as the price bounced off it before rallying back up. At publishing time, Bitcoin is trading at $65,788.
With the price movement of the last bull's run, the next rally will likely get to $71,000 before the price sees a minor correction. Although, analysts are still predicting Bitcoin to reach $90,000 before the end of the year.
But, failure for the price to make a new high will see the price of Bitcoin prepare for a big correction. And a break below $60,000 will be the start of the big correction on Bitcoin.