Bitcoin Network Enables Taproot, Biggest Upgrade Since 2017

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  • Bitcoin has just witnessed one of the biggest network upgrades in four years.
  • The Taproot update will preserve privacy on the BTC blockchain by hiding complicated transactions.
  • The Schnorr signatures, introduced in the upgrade, will also be a game-changer for smart contracts on the protocol.

One of the most anticipated upgrades to the Bitcoin network has just been activated. Taproot, the first BTC update in four years, will unlock the potential of smart contracts and expand the utility of the leading cryptocurrency.

Taproot has received near universal support

Bitcoin’s long-awaited upgrade, Taproot, was activated on November 14 at block 709,632. The new update will allow developers to incorporate new features to improve privacy, scalability and security on the BTC network.

90% of miners reported support for the upgrade, which resulted in the upgrade being locked in the second quarter of this year. The update effectively activated the first major network code upgrade since the introduction of Segregated Witness in 2017. Unlike the 2017 upgrade, which witnessed a controversial ideological divide, Taproot received almost universal support.

One of the main features of the update is the introduction of Schnorr signatures, allowing more complex transactions to be carried out on the Bitcoin network. With the new upgrade, multi-signature wallet transactions would look like any other transaction, improving transaction privacy and security.

According to Alyse Killeen, founder and managing partner of Bitcoin-focused venture capital firm Stillmark, Taproot opens up many opportunities for entrepreneurs interested in expanding the utility of the flagship cryptocurrency.

The new upgrade also allows smart contracts to be cheaper and smaller, as they take up less space on the blockchain.

Bitcoin price targets new all-time high after Taproot upgrade

The price of Bitcoin is aiming for a new all-time high after its retracement which began on November 11. The four-hour 100 simple moving average (SMA) continues to provide support for the flagship cryptocurrency as BTC climbs higher, resuming its rally.

A symmetrical triangle pattern is validated on the 4 hour chart, suggesting a 13% rise towards $ 71,703 from the upper limit of the current technical pattern. As the price of Bitcoin faced a minor sell off after its all-time high on November 10, the bullish target remains on the radar.

The immediate resistance of the Bitcoin price is at the November 8 high at $ 66,556. Exceeding this level could allow BTC to reach a new high.

4-hour BTC / USDT chart

However, if the selling pressure increases, the price of Bitcoin could drop towards the 50 four-hour SMA at $ 64,939 before falling further towards the 21 four-hour SMA at $ 64,310. Further support could emerge at the November 2 and October 22 highs, at $ 64,262 and $ 63,698, respectively.


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