Fundamental view:

Bitcoin fell significantly during the last week . The main reason for the fall is Elon Musk, the CEO of Tesla. Elon Musk’s tweet triggered a crash on May 12. Likewise, on May 16 Musk startled Bitcoin enthusiasts when he replied to a user and created confusion about Tesla having sold its BTC holdings. Although the CEO made a clarification about the confusion in a later tweet, Bitcoin price had already suffered the consequence. At the time of the panic-induced market crash, Musk alleviated the panic as he tweeted. China extending its crypto ban to include banks and payments companies offering crypto-related services furthered a selloff that briefly wiped $1 trillion off crypto market capitalisation.

Regardless of the current market conditions, US President Biden proposes to strengthen tax compliance for cryptocurrencies by requiring the investors to report transactions worth $10,000 or more to the Internal Revenue Service (IRS), according to recent reports.

The major economic events deciding the movement of the pair in the next week are Fed Governor Brainard Speech at May 24, CB Consumer Confidence Index at May 25, EIA Crude Oil Stocks Change at May 26, GDP quarterly report, Core Durable Goods Orders monthly report at May 27 and Michigan Consumer Sentiment at May 28 for US. 

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 21.84% lower than the previous week. Maintaining high at 46548.3 and low at 29927.0 showed a movement of 16621 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 29227.7 may open a clean path towards 21266.7 and may take a way down to 12606.4. Should 45849.0 prove to be unreliable resistance, the BTCUSD may raise upwards 54509.3 and 62470.3 respectively. In H4 chart symmetrical triangle breakout downside favors prospects of a bearish trend. Bearish engulfing pattern constructs a bearish outlook for the pair in the upcoming week.