Fundamental view:

Bitcoin showed a mixed trend during the past week closing with a positive node. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, intends to ban all the private cryptocurrencies in India, but will also provide a framework to create the official digital currency issued by the Reserve Bank of India. The bill will basically ban all cryptocurrencies except the official one. There will; however, be some exceptions in order to ‘promote the underlying technology of cryptocurrencies and its uses’ according to the Lok Sabha Bulletin.

Issued on 25th Jan, RBI booklet on payment systems also showed that the central bank is exploring whether to issue a digital version of the rupee. “Private digital currencies have gained popularity in recent years,” the central bank booklet said.

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Feb 01, ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI at Feb 03, Initial Jobless Claims at Feb 04, and Nonfarm Payrolls at Feb 05 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 2.00% higher than the previous week. Maintaining high at 38566.9 and low at 29168.4 showed a movement of 9388 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 upside. A solid breakout above 38907.5 may open a clean path towards 43296.0 and may take a way up to 48035.0. Should 29258.0 prove to be unreliable support, the BTCUSD may sink downwards 24519.0 and 19869.5 respectively.  In H4 chart rounding bottom pattern formation favors prospects of a bullish trend. Bullish engulfing pattern constructs a bullish outlook for the pair in the upcoming week.