Fundamental view:

Bitcoin traded high at the beginning but later turned downside against the greenback during the trading course of the week. Inflation concerns and fear about the future of the global economy continue to put weigh on Bitcoin prices, and currently, the Crypto Fear & Greed Index is solidly in the “fear” zone where it has been parked since the beginning of December.

The bitcoin had a fall following the recent Federal Open Market Committee meeting where Fed Chair Jerome Powell indicated that interest rates would remain low for the time being and the overall sentiment in the crypto market continues to wane, signaling that 2021 could end on a bearish note.

On the other hand, Willy Woo, a popular analyst stated, “long term holders have been selling down and taking profits, but as a cohort they continue to be in a region of peak accumulation. Bear markets coincide when these holders have divested of their coins, despite the fear in the market, structurally we are not setup for a bear market.

The major economic events deciding the movement of the pair in the next week are GDP quarterly report, CB Consumer Confidence Index, EIA Crude Oil Stocks Change at Dec 22, Core Durable Goods Orders monthly report, Initial Jobless Claims and Michigan Consumer Sentiment at Dec 23 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 3.13% lower than the previous week. Maintaining high at 50359.9 and low at 45477.5 showed a movement of 4882 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. Should 43886.2 proves to be unreliable support then the pair may fall further to 42240.6 and 39003.7 respectively whereas a solid breakout above 48768.6 will open a clear path upward to 52005.4 and then will further raise up to 53651.0. In H4 chart rounding top pattern formation favors prospects of a bearish trend. Bearish engulfing pattern constructs a bearish outlook for the pair in the upcoming week.