Fundamental view:

After hitting a new all-time high of $41,950, Bitcoin had a major 31% correction down to $28,560. A lot of cryptocurrency enthusiasts are concerned about the end of the current Bitcoin rally as the digital asset has dropped by more than 30% since its all-time high. However, most on-chain metrics and indicators suggest the run has just barely started.

Joe Biden, the 46th president of the United States, has frozen all rulemaking carried over from the previous administration, the White House announced after his inauguration Wednesday. This would include the proposal by the Financial Crimes Enforcement Network (FinCEN) affecting cryptocurrency wallets. The freeze is “In order to ensure that the president’s appointees or designees have the opportunity to review any new or pending rules.”

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

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 5.90% lower than the previous week. Maintaining high at 37800.1 and low at 28743.3 showed a movement of 9057 pips.

In the upcoming week we expect BTC/USD to show a bearish trend. The Instrument is trading below the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 28295.0 may open a clean path towards 23990.8 and may take a way down to 19238.2. Should 37351.8 prove to be unreliable resistance, the BTCUSD may raise upwards 42104.3 and 46408.6 respectively. In H4 chart bearish gartley pattern formation favors prospects of a bearish trend. Shooting star pattern constructs a bearish outlook for the pair in the upcoming week.