Bitcoin analysis for May 10, 2021

Looking at the chart on the four-hour time frame, we see that Bitcoin is constantly rising after reaching the previous low at $ 47,176 to the current $ 58,600. We also have good support for moving averages from below with current support with 61.8% Fibonacci level. If this bullish trend continues, our next target is the psychological zone at $ 60,000, followed by the next Fibonacci level at 78.6%. As a zone of Bitcoin price movement, we can see this growing channel and its framework lines are our resistance and support.
Looking at the MACD indicator, we know that we are in a bullish trend; if we can see based on the last candlesticks how the indicator consolidates in the neutral zone, moving sideways with a reduced volume. A new upgrade that will make the Bitcoin ecosystem safer and more useful to use will be active by the end of this year. Upgrading the Taproot will require 90% of the processed blocks to signal support, while 44% of the blocks did not signal support, putting the minimum required threshold out of range.
After increasing the block size in 2017, Taproot is the most significant upgrade of the leading network of cryptocurrencies. Amendments to the Bitcoin network are relatively rare because it is difficult. After all, it is necessary to reach a consensus among diverse and dispersed participants. An agreement in favor of Taproot was established in March, in the form of a “quick trial,” which gives miners a series of two-week blocks signaling support for the upgrade. In the month that followed, the quick trial code was merged into Bitcoin Core, setting the first step toward activation.
The Bitcoin community has agreed that the upgrade will benefit the network, making complex transactions more scalable and private. Other benefits of the upgrade include lower fees, reducing the size of data in large transactions, and greater flexibility – it improves the functionality of smart contracts on the blockchain.
Despite difficulties in reaching consensus in this round, the next two-week deadline for miners to signal support would begin again. The network will try again and again every two weeks until August 11. If the 90% threshold is not reached by that date, Taproot will not be activated.