Bitcoin’s (BTC) bullish sentiment received a minor setback on Nov. 12 afte 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, told Cointelegraph that 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 Bitcoin’s 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 and pull altcoins higher? Let’s study the charts of the top-5 cryptocurrencies that may resume the uptrend in the next few days.
Bitcoin has pulled back to the 20-day exponential moving average ($62,954), which is an important support to keep an eye on. Traders generally buy the dip to the 20-day EMA in a strong uptrend.
The upsloping moving averages indicate that buyers have the upper hand but the negative divergence on the relative strength index (RSI) warns that the bullish momentum may be weakening.
If the price rebounds off the 20-day EMA, the bulls will try to push the price above the all-time high at $69,000