WILL BITCOIN EVER RECOVER

BTC price slumped to an intraday low at $45,672. The debate remains if BTC will push above $50,000 or go to $40,000.

On Monday, Bitcoin’s short-term outlook worsened after the price fell to an intra-day low at $45,672, a far cry from the weekend’s optimistic rally above the $50,000 level.

With the year nearly complete, and all-time highs almost 33% away, traders are most likely readjusting their expectations and pushing the $100,000 BTC target a bit further into 2022.

Day traders, 4-hour chart watchers, and over-leveraged longs are likely freaking out (unless they went short from $50,000 over the weekend or at this morning’s drawback.

BTC/USD DAILY CHART ANALYSIS

After a fresh push above $50,000 ended in rejection, BTC/USD is keeping traders guessing even when it comes to near-term price action.

On the daily timeframe, we can see the price struggling to break out from the trend of daily lower highs, and aside from the Dec. 4 drop to $42,000, traders appear apprehensive to buy into the most recent dips.

While some traders expect more downside more experienced traders know that Bitcoin price tends to make double tops, M-tops, and head and shoulders patterns after hitting new all-time highs. Most analyst perceives a double top, which is a clear trend reversal pattern

Looking at the daily time frame, we can begin to see what looks like the start of a head and shoulders pattern. The current dips and consolidation could complete the right shoulder, with a neckline at $41,500, and a price target near a number so low that it won’t be written here.

I take no pride or pleasure in saying "I told you so." To be perfectly fair, even though I knew that a wide pullback was likely, I didn't personally take very much evasive action.

The last of my leveraged trades had been liquidated a long time ago. So other than slightly increasing my monthly cashouts for November and December, I left my portfolio largely as-is.

The fact is that we've been in a wide trading range for this entire year, with lows around $30,000 and highs above $65,000. The blue line represents Bitcoin's 200-day moving average.

The hope, of course, is that we will be able to build up support somewhere near the blue line, or even slightly below it.

The hopes many had to see a new all-time high before the end of the year have mostly been dashed, though there still may be a few hopeful analysts. At this point, it seems to me that the possibility for more short-term pain is a bit more prevalent.

Of course, all of the above is just short-term price action. Should the price come down further, I will probably decide to deviate from my debt-paying regimen and instead take on more debt for investment purposes.
I'm not like MicroStrategy chairman & CEO Michael Saylor, who can afford to dollar-cost average with debt while the market is at the top.
Instead, I need to wait for a good deal.

HOW INFLATION IS AFFECTING BITCOIN PRICE
To those of us paying attention, Friday's inflation figures were not at all a shock. However, that doesn't make them any less shocking.

Over the last year, the value of your money in the bank, your paycheck, and all U.S. dollars in circulation have lost nearly 7% of their value.

If bitcoin is a hedge against inflation, as many seem to think, then it's not doing a very good job of reacting to the data.

As I write, the price has now fallen below its 200-day average of $46,784, this is because the Federal Reserve policymakers have taken a sharp turn from providing the markets with abundant liquidity to pulling back that liquidity at a very fast pace, much faster than most of us expected, to get a handle on inflation.

Hence, higher inflation figures, even in the face of weak employment data, motivate Fed policymakers to tighten the belt even faster.

This week’s macro trigger comes in the form of the United States Federal Reserve and its next announcement on the state of its asset purchase program.

A meeting of the Federal Open Market Committee could provide valuable insights into the future of quantitative easing (QE) and the speed of “tapering” asset purchases.

Amid an inflationary environment and the ongoing risk of coronavirus fallout, the Fed faces an unenviable balancing act when it comes to the credibility of policies it chose to enact, some are eyeing the meeting as being much more potentially disruptive to crypto markets than last week’s Consumer Price Index data, which showed the highest U.S. inflation since 1982.

“With no opposition raised by other Fed officials, despite the uncertainty presented by the emergence of the Omicron variant, next week, meeting look set to see the Fed announce an acceleration in QE tapering, with a $30bn reduction for January and a further $30bn reduction in February.
This would mean the Fed wrapping up the program by the beginning of March, leaving the Federal Reserve with $8.8tn of assets on its balance sheet – more than double its pre-pandemic January 2020 level!

SECURING YOUR CRYPTOCURRENCIES
We're all familiar with the true story of a British man who tried to dig up his lost hard drive with $350 Million in Bitcoin from a landfill.
The end of the year is a great time to ensure you're not storing all your crypto private keys on one hard drive that could get thrown out. Jot down your keys on paper, and store them safely.

CONCLUSION
This article should not be accepted as financial advice, ensure to do your research before investing in a crypto project.

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