Monday, December 5, 2022

Bitcoin Price Roars Back in Bull Rally Following Scaling Resolution

Bitcoin Price Roars Back in Bull Rally Following Scaling Resolution

The bitcoin price is back from the brink of destruction, and it doesn’t look like this rally will stop any time soon.

Also read: Bitcoin Likely to Avoid Fork as Over 80% of Miners Support BIP91 SegWit

After a deep crash that had traders and analysts worried about the coin’s future, bitcoin roared back in a rally following an unexpected resolution to the years-long block size debate.

Bitcoin Price Crash Amid Fears of Hard Fork Apocalypse

The bitcoin price took a major dive on July 16, falling below the $2000 USD mark for the first time in months — hitting a low of $1800.

With the August 1 scalability deadline fast approaching — miners having to decide whether or not to support SegWit2X — community members and market watchers feared a crypto apocalypse. In the event of a contentious hard fork on August 1, they said, this crash would continue to unimaginable depths.

But then the unexpected happened. On the 17th, the day after the crash, bitcoin mining titan Bitmain made an announcement. Starting that day, they said, all Bitmain-owned mining pools would signal for the SegWit2X upgrade in preparation for the August 1 implementation.

Within hours of the announcement, over 30 percent of the global hash rate had started signaling for the upgrade. As of this morning, that number has increased to more than 80 percent.

Now, after weeks of uncertainty over SegWit2X activating at all, Bitcoiners expect the activation to happen before the August 1 deadline.

With more than 80 percent of the hash rate showing support for the upgrade in the current signalling period, it is becoming more likely for the implementation to get locked in, and for activation to begin.

Bitcoin Price BIP 91

“Based on a signalling hash rate of 82% (which is where we stand without F2Pool or,” said Reddit user CaptainOuzo, “the probability of activation this period is 90%.

“If F2Pool joins, as they promised to do, the probability will be nearly 100%.”

Bitcoin Markets Rally

Following the Bitmain announcement on Monday, the price recovered to levels above $2000. In the days since the announcement, as SegWit2X signaling continues increasing, the price has exploded.

After recovering to $2000, the price quickly rose to the $2300 range, where it stayed for most of the 18th and 19th. On the morning of July 20, though, the price skyrocketed to $2500 and beyond.

At press time, the bitcoin price sits at $2638, and has made repeated attempts to break $2700.

Thus, with the scaling debate seemingly reaching resolution — at least for now — confidence in the markets has returned in full force. According to Bitsonline’s most recent technical analysis, the stability gained in the wake of the Sunday crash strengthened the lower-bound resistance of $1900, from which the price would try to push upwards.

And push upwards it did. According to an older technical analysis, if the bitcoin price breaks the $2600 resistance and continues rising, we could see prices get as high as $3500.

Let’s just hope nothing crazy happens between now and August 1.

Do you think we will get SegWit2X activation early? Share your thoughts in the comments below. 

Images via Dream of Animals, Imgur

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