Fundamental view:

Bitcoin price has penetrated below the psychological level  $50000 and closed around $48000 this week. Some recent news might have lead the Bitcoin to crash. The president of Payne Capital Management, Ryan Payne has warned that crypto is “one of the biggest bubbles ever.” Stressing that the crypto market is “becoming a bigger and bigger casino,” he predicts that the bubble will eventually burst and “It’s going to be ugly.” Elsewhere, Berkshire Hathaway Vice Chairman Charlie Munger, who is often called Warren Buffett’s right-hand man, also commented on cryptocurrency, particularly bitcoin. He commended China for banning crypto and said he wishes crypto had never been invented. Another recent news weighs on the crypto king, The White House announced Monday, “In line with the president’s direction, the Biden-Harris administration is releasing the first-ever ‘United States Strategy on Countering Corruption.’” The 38-page report outlines the U.S. government’s strategy to fight corruption globally. Also South Africa’s financial sector regulator, the Financial Sector Conduct Authority (FSCA) is set to unveil a new regulatory framework that covers cryptocurrency in early 2022.

On the other hand, Some traders use the strategy of buy the dip for bitcoin.  El Salvador has stacked 150 Bitcoin after BTC price crashed below $50k. Following the footsteps of El Salvador, the government of Zimbabwe is considering the mainstream use of Bitcoin.  Despite some traders buy the dip, rest tend to follow the trend and prevailing trading atmosphere weighs on the bitcoin and we expect the Bitcoin to consolidate further.

The major economic events deciding the movement of the pair in the next week are Retail Sales monthly report, EIA Crude Oil Stocks Change, Fed Interest Rate Decision at Dec 15, Initial Jobless Claims, Fed Industrial Production monthly report at Dec 16 and Fed Governor Waller Speech at Dec 17 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 14.00% lower than the previous week. Maintaining high at 51936.2 and low at 46782.7 showed a movement of 5154 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 45934.1 proves to be unreliable support then the pair may fall further to 43781.6 and 40780.6 respectively whereas a solid breakout above 51087.6 will open a clear path upward to 54088.6 and then will further raise up to 56241.1. In H4 chart inverted cup and handle pattern formation favors prospects of a bearish trend. Bearish engulfing pattern constructs a bearish outlook for the pair in the upcoming week.