A popular crypto trader and market analyst thinks an upcoming Bitcoin upgrade could send the king crypto asset flying in a year-end rally.
The trader, known as Crypto Messiah, makes the case for Bitcoin (BTC) in a new video from Hxro Labs, arguing that BTC will see new highs upon the arrival of the Taproot update in November. The upgrade aims to bolster Bitcoin’s privacy measures and smart contract flexibility.
Following Ethereum’s highly anticipated EIP-1559 update, which integrates a fee-burning mechanism with transactions that permanently burns Ethereum (ETH) tokens from the supply, the crypto asset shot up to a local high of $3,300.
Messiah believes that Bitcoin will follow a similar trajectory to ETH following its Taproot upgrade.
“Here’s the thing – the same thing was said for [EIP-1559], in that, is it a catalyst or is it not? Honestly, I thought it would be a sell-the-news event, and I couldn’t have been more wrong.
But the thing is, Taproot is going to be the same way. We have a catalyst for Bitcoin, we haven’t really had a narrative for Bitcoin rotation in a minute. That’s your narrative, [in my opinion].”
Messiah thinks that if Bitcoin can successfully maintain current price levels over the next couple of months, the sustained confidence in the market could potentially send altcoins flying.
“I can imagine something like this playing out.”
Source: Crypto Messiah
Looking at the trading volume on the right side of his chart, Messiah says that volume looks relatively low in the $50,000-$60,000 range. He wants to see more volume fill up the gap in that range before he can feel confident about a push to new all-time highs.
“Maybe Taproot is sell-the-news. Maybe Bitcoin pumps into Taproot, and then we have some kind of alt window after that. I’m still thinking this is unlikely, just because we do have this [volume] gap. We do have some ground to make up here. I really do think that we flesh out this volume profile node. That’s going to look really, really good … and then we can rotate into Bitcoin for Taproot.”
Source: Crypto Messiah
Messiah thinks that if Bitcoin can follow price action similar to his outline and fill in the volume gap, then the token will be primed to rally this winter.
“This sets us up perfectly for what we all crave, which is, the December, Christmas, Santa’s-coming Bitcoin moon. It’s weird, Bitcoin seems to be just going nuts a lot of times into the end of December, and this would align perfectly with that.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/80’s Child