Fundamental view:

Bitcoin fell significantly during the course of the week. Market participants seem to be panic and are selling their holdings, sending the market into a tailspin. Bitcoin price witnesses two crashes in less than a week, Some unfounded sources stated that the U.S. Treasures would go after financial institutions for money laundering using cryptocurrencies. As market participants quickly realized this was a fluke, the market-wide sell-off was attributed to the power outage in Xinjiang. The next news was the news that federal capital gains tax rate would be as high as 39.6%, which is nearly a 100% bump from what investors currently pay, 23.80%.

All in all, the current Bitcoin price drop is concerning, no doubt. However, the massive inflow of institutional capital into the space combined with a large number of publicly traded companies supports the Flagship cryptocurrency.

The major economic events deciding the movement of the pair in the next week are Core Durable Goods Orders monthly report at April 26, CB Consumer Confidence Index at April 27, EIA Crude Oil Stocks Change, Fed Interest Rate Decision at April 28, GDP quarterly report, Initial Jobless Claims at April 29, and Employment Cost Index at April 30 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 12.70% lower than the previous week. Maintaining high at 57504.5 and low at 47400.0 showed a movement of 10104 pips.

In the upcoming week we expect BTC/USD to show a bearish trend. The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 45501.1 may open a clean path towards 41398.3 and may take a way down to 35396.6. Should 55605.6 prove to be unreliable resistance, the BTCUSD may raise upwards 61607.3 and 65710.1 respectively. In H4 chart descending scallop pattern favors prospects of a bearish trend. Bearish harami pattern constructs a bearish outlook for the pair in the upcoming week.