Fundamental view:

Bitcoin dropped against the US dollar during the trading course of the week.  The fall can be related to the souring of global risk sentiment and traders moving towards the safe haven. The recent crypto.com hacking and Russia’s call for banning crypto also weighs on the Bitcoin. On Thursday, Cryptocurrency exchange Crypto.com acknowledged that the company had lost well over $30 million in Bitcoin and Ethereum after a hack that took place on January 17th. Meanwhile, The Central Bank of Russia has called for a blanket ban on domestic cryptocurrency trading and mining. The report titled “Cryptocurrencies: Trends, risks, measures” compares cryptocurrencies to a Ponzi scheme and calls for a complete ban on their use throughout Russia. The authors claim that cryptocurrencies are highly volatile in nature and are being used as a tool for illegal activities. The report also warned that crypto could pose a risk to financial sovereignty and could aid people in taking money out of the national economy.

On the other hand, El Salvador’s National Commission for Micro and Small Enterprises (Conamype) communicated its plans to offer Small and Medium Enterprises (SMEs) $10m in crypto-based loans in Q1 of 2022. It’s been reported that 86% of businesses in El Salvador operate on an informal basis without access to banking services. Moreover, Robinhood is set to offer crypto wallets to 1,000 customers from a waiting list to test the new, unreleased version of the product. The waitlist is reported to boast more than a million users with access to the wallet set to be expanded to 10,000 clients in March due to popular interest. Amidst all the mixed catalysts, bitcoin trades lower.

The major economic events deciding the movement of the pair in the next week are CB Consumer Confidence Index at Jan 25, EIA Crude Oil Stocks Change, Fed Interest Rate Decision, FOMC Press Conference at Jan 26, GDP quarterly report, Core Durable Goods Orders monthly report, Initial Jobless Claims at Jan 27 and Michigan Consumer Sentiment at Jan 28 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 2.10% lower than the previous week. Maintaining high at 43501.1 and low at 35454.9 showed a movement of 8047 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 33352.6 proves to be unreliable support then the pair may fall further to 30380.6 and 25306.4 respectively whereas a solid breakout above 41398.8 will open a clear path upward to 46473.0 and then will further raise up to 49445.0. In H4 chart symmetrical triangle pattern breakout downside favors prospects of a bearish trend. Bearish engulfing pattern constructs a bearish outlook for the pair in the upcoming week.