Fundamental view:

Despite the positive metrics behind Bitcoin’s run, the flagship cryptocurrency remains extremely volatile. According to Goldman Sachs, Bitcoin needs more institutional money to flow in to mature as an asset and avoid extreme volatility. Jeff Currie, Global Head of Commodities Research at Goldman Sachs says Bitcoin has shown signs of maturity already but funds from institutional investment sectors are still low in comparison.

Not everyone believes Bitcoin is a great investment option. The European Central Bank (ECB) President Christine Lagarde called Bitcoin a speculative asset and that regulation will be needed. Nonetheless, she also stated that the digital euro could happen within five years from now.

The major economic events deciding the movement of the pair in the next week are TIC Net Long-Term Transactions at Jan 19, Building Permits, Philadelphia Fed Manufacturing Index, Initial Jobless Claims at Jan 21, Markit Manufacturing PMI, and EIA Crude Oil Stocks Change at Jan 22 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 4.86% lower than the previous week. Maintaining high at 40032.2 and low at 30260.6 showed a movement of 9772 pips.

In the upcoming week we expect BTC/USD to show a bullish trend. The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout above 41230.8 may open a clean path towards 45517.6 and may take a way up to 51002. Should 31458.9 prove to be unreliable support, the BTCUSD may sink downwards 25973.8 and 21687.0 respectively. In H4 chart, if breakout of the Symmetrical triangle is to the upside then bullish expectation is favored. Also to be noted Hammer formation exerts the expectation of uptrend for the pair.