Bitcoin analysis for 04/01/2018

Bitcoin developer, Dr. Pieter Wuille, claims that SegWit will optimize the problems that Bitcoin has. Over 65% of the entire block is covered only by electronic signatures. This fact can be changed by updating the Bitcoin software in such a way that the data related to the signatures are separated from the transaction data. The SegWit proposal assumes the omission of the signature from the relay (occupying almost 60% of the block space), shortening old signatures and solving the problem of modification of the signed transaction.

Bitcoin started its year well, several schemes and technological solutions were presented to solve the problems related to its scalability. These initiatives include the SegWit, Lightning Network and Schnorr signatures. Many enthusiasts and investors hope that these efforts will be supported by all interested parties and will cause a successful resolution of the troubles with the world's largest cryptocurrency.

Let's now take a look at the Bitcoin technical picture on the H4 time frame. The golden trend line resistance has been violated and the market tried to rally towards the technical resistance at the level of $16,638 but failed. The price reversed and is currently testing the trend line from above. As long as the market stays above the intraday support at the level of $14, 106, the outlook remains bullish to neutral. Otherwise, the bears might push the market lower towards the technical support at the level of $12,396.


The material has been provided by InstaForex Company -