Fundamental view:

Bitcoin edged higher against the US dollar during the trading course of the week. The rationale behind the move can be related to the fall of the dollar due to the Labor Statistics showing that the Consumer Price Index (CPI) rose to 7% on a yearly basis in December on Wednesday. Moreover, the country released December Retail Sales that was much worse than anticipated, falling by 1.9% MoM. Elsewhere, The core reading, Retail Sales Control Group, declined to -3.1 amidst all the catalysts the US dollar showed a downtrend.

On the other hand,   Financial guru Dave Ramsey says crypto is “fun” and can be a small part of investment portfolios. He said “It’s a commodity. Is it going to be around? Sure, it’s going to be around.” Also favoring the King Crypto was the JP Morgan survey. JPMorgan has conducted a survey of its clients about what they expect the price of bitcoin to be by year-end. The global investment bank released the results earlier this week. About 41% of the bank’s clients who responded expect bitcoin to end the year at around $60,000. 23% expect the price to be $20,000 while 20% expect it to be $40,000. In addition, 9% believe that the price of BTC will reach $80,000, 5% think that it could be $100,000 or more, while 2% expect it to fall to $10,000 or lower.

The major economic events deciding the movement of the pair in the next week are TIC Net Long-Term Transactions at Jan 18, Building Permits at Jan 19, Initial Jobless Claims, EIA Crude Oil Stocks Change at Jan 20 and Baker Hughes US Oil Rig Count at Jan 21 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 6.62% lower than the previous week. Maintaining high at 44422.2 and low at 39660.5 showed a movement of 4762 pips.

In the upcoming week we expect BTC/USD to show a bullish trend. The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 45086.8 may open a clean path towards 47135.3 and may take a way up to 49848.5. Should 40325.1 prove to be unreliable support, the BTCUSD may sink downwards 37611.9 and 35563.4 respectively. In H4 chart cup and handle pattern formation favors prospects of a bullish trend. Bullish engulfing pattern constructs a bullish outlook for the pair in the upcoming week.