On the 4-hour TF, it is evident that bitcoin has deviated below the ascending trend line, but overall, since the most recent collapse, it has been mostly moving sideways, which is exactly what we anticipated. Remember that the "collapse-flat-collapse" trading strategy will be used in 2022 when bitcoin is traded. As a result, despite crossing over the trend line, a long flat can now be seen. The fundamental context will then determine everything. Recall that there have recently been rumors that the cryptocurrency exchange Binance is having liquidity issues. It's unclear how this story will turn out.
There is another "smoke," without which "there is no fire," in addition to potential issues with Binance. Sherrod Brown, the head of the US Senate Banking Committee, recently discussed the prospect of outlawing bitcoin in the nation. He said that because bitcoin poses a risk to national security, the Central Bank (Fed) should take all necessary precautions without outside interference from unregulated financial instruments. However, Brown also cautioned that because many market participants will withdraw or relocate offshore, the ban on cryptocurrencies could have unintended consequences. Another Banking Committee senator, Jon Tester, previously claimed that bitcoin has not stood the test of time and has no use or benefit. Brown also brought up the demise of the FTX cryptocurrency exchange, claiming that this is only a small portion of a much larger issue. Brown was alluding to the government agencies' lax oversight and regulation of the cryptocurrency market, which is why traders and investors may lose their money at any time even if the exchange's reputation is unquestionable.
Remember that there have been discussions about outlawing cryptocurrencies and other digital assets in a certain nation for about as long as there has been a cryptocurrency market. Cryptocurrencies have the potential to develop into an unrestrained version of fiat money. Unrestrained central banks are something that neither the central bank nor the governments supporting them want, of course. We think cryptocurrencies have so far been unable to replace fiat currency. They can be used in some situations, but they are not superior to money in terms of quality, convenience, or stability. Anonymity is a benefit, though even that is questionable in the present day. In the same states, they want to make it mandatory for all business entities to compile and make available upon request any information regarding the owners of digital assets. As a result, the government and Central Bank do not currently perceive a threat from cryptocurrencies to the financial system.
As they consolidated below the trend line in the 4-hour time frame, the quotes for "bitcoin" very quickly finished the formation of an upward trend. As a result, we are currently anticipating a new cryptocurrency drop with a target of $12,426. There are still no indications that bitcoin will experience rapid growth in the near future.
