Fundamental view:

Bitcoin traded low against the greenback during the trading course of the week. This crash to lowest since late September comes in the wake of uncertainties caused by the Omicron variant of COVID-19 and Federal Reserve’s (Fed) growing discomfort with high inflation. In this week, US Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen, testified on the CARES act before the Senate. Powell noted that inflation had spread more broadly and that the risk of persistent inflation has risen. He added that it’s time to remove the term “transitory” to describe price pressures, and the Fed would discuss speeding up tapering in their December meeting, to counter inflation. This further weighed on the Bitcoin.

Elsewhere, some are using this fall as an opportunity to “buy the dip.” El Salvador President Nayib Bukele, whose country holds bitcoin on its balance sheet and has purchased coins during previous dips, announced another purchase of 150 BTC for around $48,700 each. Meanwhile, Vijay Ayyar, head of Asia Pacific with crypto exchange Luno said “It’s hard to say what that means for economies and markets and hence the uncertainty.”

The major economic events deciding the movement of the pair in the next week are Nonfarm Productivity quarterly report at Dec 7, EIA Crude Oil Stocks Change at Dec 08, Initial Jobless Claims, WASDE Report at Dec 09, Michigan Consumer Sentiment and Federal Budget Balance at Dec 10 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 0.53% lower than the previous week. Maintaining high at 59206.9 and low at 51910.2 showed a movement of 7296 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. Should 50231.7 proves to be unreliable support then the pair may fall further to 47422.6 and 42935.0 respectively whereas a solid breakout above 57528.4 will open a clear path upward to 62016.0 and then will further raise up to 64825.1. In H4 chart descending triangle breakout favors prospects of a bearish trend. Shooting star pattern constructs a bearish outlook for the pair in the upcoming week.