As described by criptonoticias, Taproot is the most anticipated Bitcoin update in recent years, and it was finally activated in the protocol during the early hours of this Sunday, November 14, at the height of block 709,632. The block was mined by F2pool and contains the message gm taproot, or good morning taproot.
From now on, Bitcoin has better tools to make transactions more private, efficient, less expensive, and also to make its smart contracts more flexible and advanced.
Being proposed in 2018, Taproot went through a long path of development and discussion, including a consultation period starring the miners, who demonstrated their support for this update last June 2021.
Taproot is an update summarized in three Bitcoin or BIP improvement proposals: Taproot (BIP 341), Schnorr (BIP 340), and Tapscript (BIP 342).
Together, these proposals come to do several important things:
- Optimize the language (Script) for the instructions for spending bitcoins (BTC), to make it easier and more compatible with the updates that Bitcoin may have over time.
- It introduces the Schnorr cryptographic signature generation algorithm, which allows users to create, manage and combine user signatures in a lighter way, greatly benefiting users of wallets and multi-signature transactions, for example.
- Taproot introduces a new structure to organize the information of Bitcoin transactions, the Merkle Tree of Alternative Syntax or MAST, whose main benefit is to hide the spending instructions that a transaction has, showing only the one that was finally used, so as not to have to add data that we don’t use to the Bitcoin blockchain.
Reason To Keep Accumulating
With this major update to the Bitcoin network, many may be wondering “what to do now.” We have a simple answer: it is important to keep accumulating. Why?
Just look at the weekly chart for understanding the next high pattern that will happen. Simply, Bitcoin is creating a bullish breakout wedge and, exactly, to be able to break the 0.25 Gann line, that we have drawn in our personal analysis.
Most indicators don’t show overbought parameters yet. They are in favor of accumulation in the medium term and with a tendency to gradual growth in the volume of trades. Our wave 5 of Elliot is apparently not over yet.
Looking For Historical Price
Looking at Ethereum, we can deduce that it will be very important for this asset to overcome the $ 4800 resistance barrier in order to reach our maximum projection of $ 6000.
For the current accumulation points, it is recommended to place your capital at stake considering a calculated risk, since this asset begins to enter the overbought zone. The above is due to the fact that most of the weekly indicators show overload of negotiations but with a tendency to continuity.
Of the third cryptocurrency with the largest market capitalization, we can say that weekly it has come out of the ABC correction and is starting a new cycle of 12345 waves.
Soon the break of the resistance of $ 661.15 will make the price look for new highs “in the blink of an eye.”
We recommend accumulating for the medium and long term making the average price in the region from the support and with a price of $ 581.45 and up to the current price of 645.58.
Binance Chain, as many of us know, is a very silent cryptocurrency that always congruently accompanies the dimensional movements of the market. Because it is a very useful cryptocurrency, investors will always set their sights on this asset, which makes a lot of competition to the Ethereum network.
Accumulate But Do Not Sell
Litecoin continues in a harmonic movement of 12345 waves. This asset, and under the reference of the price between $ 240 and $ 291, can lead to trigger an increase in buying interest by investors in the coming weeks.
All weekly indicators are positive in relation to the primary uptrend. A good sign that it makes us, and personally, say that if you still have this asset in your portfolios, you should maintain your position until the touch of the approximate maximum price of $ 375.99.
Slow But Safe Way
At this time, we know that it is very risky to place our money in many Altcoins. However, we bring a safe and practical recommendation.
In recent weeks, the cryptocurrency Qtum has shown positive signs of accumulation in the region between $ 14.99 and $ 18.99, thus attracting the attention of silent buyers and especially treasure hunters.
In mid-December (next month), this asset will go through an important update in its network of nodes. We have all already seen that the next Halving can make said asset has improvements in its technology and many new looks.
Harmonically and to conclude, Qtum presents a primary trend within a range of 12345 waves, the last wave being the one that can lead the price to break the main strongest resistances.
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Cryptocurrencies For Watching After The Official Taproot Activation was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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