Fundamental view:

Bitcoin edged higher against the US dollar during the trading course of the week. The broad US dollar weakness and the threat of rising inflation are the major catalysts in the bullish move of the quote BTC/USD. US policymaker’s hesitance on rate hike along with weak US ADP data weighed on the US dollar during the first half of the week but strong NFP data on Friday helped the greenback. ADP showed a report that the employment in the private sector had declined from 301,000 in January which raised concerns over worsening conditions in the US labour market. However, On Friday, the US Bureau of Labor Statistics (BLS) announced that Nonfarm Payrolls increased by 467,000 in January, surpassing the market expectation of 150,000.  The Unemployment Rate ticked higher to 4%, while the Participation Rate jumped to 62.2%, and signaled quite a healthy recovery in the sector.

Other recent catalysts also helped the oldest crypto currency – Bitcoin. A bill previously introduced by Washington Representative Suzan DelBene aimed to exempt crypto users from paying taxes on transactions under $200. Elsewhere, Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has suggested that the flagship cryptocurrency bitcoin ($BTC) is part of the path to “financial heaven,” along with precious metals gold and silver. Moreover, the underlying strength of Bitcoin as an asset remains strong – it is still the best performing financial instrument of the past 11 years.

The major economic events deciding the movement of the pair in the next week are EIA Crude Oil Stocks Change, WASDE Report at Feb 09, Initial Jobless Claims, Federal Budget Balance at Feb 10 and Michigan Consumer Sentiment at Feb 11 for US.  

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 7.16% higher than the previous week. Maintaining high at 41913.8 and low at 36268.2 showed a movement of 5645 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 43506.4 may open a clean path towards 45532.9 and may take a way up to 49152.0. Should 37860.8 prove to be unreliable support, the BTCUSD may sink downwards 34241.7 and 32215.2 respectively. In H4 chart bullish shark pattern formation favors prospects of a bullish trend. Hammer pattern constructs a bullish outlook for the pair in the upcoming week.