Fundamental view:

Bitcoin has been one of the best assets this year despite the coronavirus pandemic. After hitting a low of $4,000 on many exchanges in March, the flagship cryptocurrency is currently trading at $19,000 and aiming for new all-time highs.

Bitcoin’s move to the new all-time high was followed by massive profit-taking triggered a cascading leveraged positions liquidation, which is a natural thing on the cryptocurrency market. According to ByBit, over 81,000 traders were kicked out from the market, with the positions worth over 30,000 BTC were liquidated in a matter of hours. The largest single liquidation took place on Huobi, where a trader lost about $6 million. 

Moreover, Bitcoin is now regarded as a more attractive investment and a store of value than gold. Considering the seismic shifts in the market sentiments, the digital coin may soon outshine its physical counterpart.

The major economic events deciding the movement of the pair in the next week are Nonfarm Productivity quarterly at Dec 08, JOLTS Job Openings, EIA Crude Oil Stocks Change at Dec 09, Initial Jobless Claims at Dec 10, and CPI monthly report at Dec 11 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 2.10% higher than the previous week. Maintaining high at 19884.6 and low at 16867.1 showed a movement of 3017 pips.

In the upcoming week we expect BTC/USD to show a bullish trend. The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout above 20119.7 may open a clean path towards 21510.9 and may take a way up to 23137.2. Should 17102.2 prove to be unreliable support, the BTCUSD may sink downwards 15475.9 and 14084.7 respectively. In H4 chart bullish gartlay pattern formation favors prospects of a bullish trend. Hammer pattern constructs a bullish outlook for the pair in the upcoming week.