Fundamental view:

Bitcoin dropped against the US dollar during the trading course of the week. The Crypto king traded low this week with US inflation data, possible moves by the US Federal Reserve (Fed), and bearish-looking technology stocks all weighing on investors’ sentiment and causing worry about the way forward. Bitcoin is trading near the $40,000 support level, which runs through the lows of the first three months of the year. Analysts said bitcoin could see more choppy price action in the coming months.

On the other hand, The Fed policymakers reiterated a 50 bps rate hike in May and paved the way for a reduction of the balance sheet .New York Fed President John Williams said that a half-point hike at the May 4 meeting  was a “very reasonable option” but that the pace of increases depends on the economy. Meanwhile, the Australian data was mixed this week. Commenting on the outlook for the US economy, Cleveland Fed President Loretta Mester said that she believes a US recession can be avoided even as the Fed continues to tighten. “It’ll be challenging, but we can do it,” she said, per a Bloomberg report.

The major economic events deciding the movement of the pair in the next week are Building Permits at Apr 19, EIA Crude Oil Stocks Change, Fed Beige Book at Apr 20, Philadelphia Fed Manufacturing Index, Initial Jobless Claims, Fed Chair Powell Speech at Apr 21 and S&P Global Manufacturing PMI at Apr 22 for US.  

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 9.85% lower than the previous week. Maintaining high at 42722.9 and low at 39226.1 showed a movement of 3496 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 downside. A solid breakout above 42449.4 may open a clean path towards 44334.5 and may take a way up to 45946.2. Should 38952.6 prove to be unreliable support, the BTCUSD may sink downwards 37340.9 and 35455.8 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bullish trend. Bullish engulfing pattern constructs a bullish outlook for the pair in the upcoming week.