Fundamental view:

Bitcoin fell against the US dollar during this week due to the positive sentiment for the greenback. Bitcoin price continues to move sideways in an increasingly tightening trading range to the dismay of cryptocurrency investors. And the bearish sentiment across the space is among the most prominent in years which is potentially more bearish than the 2018 bear market.

The hawkish comments from the Fed policymakers especially Powell’s speech weighed on the Bitcoin as  investors trim risky assets in expectation of an aggressive stance from central banks to curb surging inflation. St. Louis Fed President James Bullard said that the Fed might want to consider 75 basis points rate hikes and also reiterated that the policy rate needs to rise to 3.5% by the end of the year to tame inflation. While speaking at the IMF Spring Meetings on Thursday, FOMC Chairman Powell reiterated that they are planning to get interest rates “expeditiously” to neutral. Powell also said that 50 bps rate increases will be on the table moving forward. Speaking about the state of the US economy, Powell noted that the US labor market was still very tight and that the economy was very strong.

The major economic events deciding the movement of the pair in the next week are Core Durable Goods Orders monthly report, CB Consumer Confidence Index at Apr 26, EIA Crude Oil Stocks Change at Apr 27, GDP quarterly report, Initial Jobless Claims at Apr 28, Employment Cost Index quarterly report and Michigan Consumer Sentiment at Apr 29 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 0.59% higher than the previous week. Maintaining high at 42973.3 and low at 38570.5 showed a movement of 4403 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 37727.4 proves to be unreliable support then the pair may fall further to 35947.6 and 33324.6 respectively whereas a solid breakout above 42130.2 will open a clear path upward to 44753.2 and then will further raise up to 46533.0. In H4 chart rising wedge pattern breakout favors prospects of a bearish trend. Bearish harami pattern constructs a bearish outlook for the pair in the upcoming week.