Fundamental view:

Bitcoin showed a sell – off during the trading course of the week and reached its five month low of $40648. The Hawkish Fed is the main catalysts behind the fall. The Federal Reserve Bank released the minutes of its December meeting this week, which elaborated that there is a greater urgency to scale back the unprecedented level of support for the US economy, due to stubbornly high inflation as the job market also approaches full employment. Fed policymakers will began discussing the reduction of their bonds holding in the upcoming months. Additionally,  political unrest continued in Kazakhstan, caused a decline in bitcoin’s global computing power. This happened after the internet was shut down nationwide.

On the other hand, Chris Kline, COO and co-founder of Bitcoin IRA said “This is a healthy pullback as all markets look to readjust to new monetary policies and inflation concerns,” “Inflation is not going away anytime soon and investors are looking to protect themselves from higher prices and rapidly changing economic conditions, and see crypto as a potential hedge.”

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Testimony at Jan 11, EIA Crude Oil Stocks Change, Federal Budget Balance at Jan 12, Initial Jobless Claims at Jan 13, Retail Sales monthly report and Fed Industrial Production yearly report at Jan 14 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 9.4% lower than the previous week. Maintaining high at 47569.1 and low at 40648.7 showed a movement of 6921 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 39173.0 proves to be unreliable support then the pair may fall further to 36450.6 and 32252.6 respectively whereas a solid breakout above 46093.4 will open a clear path upward to 50291.4 and then will further raise up to 53013.8. In H4 chart descending triangle breakout favors prospects of a bearish trend. Bearish harami pattern constructs a bearish outlook for the pair in the upcoming week.