Fundamental view:

Bitcoin has seen a sharp fall in the last week. Elon Musk revealed Tesla’s decision on accepting payment in BTC, He tweeted on May 13 that the electric car maker will no longer accept payment in BTC. This was the major highlight of the week which lead to the fall, with the recent mining difficulty adjustment coming in at a close second. Adding to the fall was the recent news that reports of Binance, one of the world’s largest cryptocurrency exchanges was investigated by the US Justice Department and Internal Revenue Service.

On the other hand, Bitcoin’s increasing popularity attracted interested parties to explore the mining industry and its profitability as well.  Renaissance Technologies which is an American hedge fund known for outperforming a majority of the investment companies, has ventured into the Bitcoin mining industry. The investment firm has amassed $140 million worth of stock positions in popular mining companies like Riot, Marathon, and Canaan in the first quarter of 2021.

The major economic events deciding the movement of the pair in the next week are Building Permits at May 18, EIA Crude Oil Stocks Change, FOMC Minutes at May 19, Initial Jobless Claims, Philadelphia Fed Manufacturing Index at May 20 and Existing Home Sales at May 21 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 0.06% higher than the previous week. Maintaining high at 59511.5 and low at 45890.8 showed a movement of 13621 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. A solid breakout below 44290.6 may open a clean path towards 38280.3 and may take a way down to 30669.9. Should 57911.3 prove to be unreliable resistance, the BTCUSD may raise upwards 65521.7 and 71532.0 respectively. In H4 chart descending scallop pattern favors prospects of a bearish trend. Shooting star pattern constructs a bearish outlook for the pair in the upcoming week.