Fundamental view:

The price of Bitcoin (BTC) has seen a recovery during the past week, surging by nearly 6.5% since Oct. 2. The resilience of the dominant cryptocurrency has traders pleasantly surprised, as many analysts anticipated a larger pullback. Following BTC’s rebound above the critical $10,500 support level to just over $11,000, the sentiment turned optimistic.

There are several key factors that aided the recovery of Bitcoin from the initial drop below $10,500. First, the U.S. dollar has declined in the past 14 days, indirectly causing BTC and gold to rally. Second, the news around Square’s $50 million Bitcoin purchase lifted the overall sentiment. Third, some analysts state that BTC was bullish before the Square news happened, with a favorable technical structure.

The major economic events deciding the movement of the pair in the next week are Federal Budget Balance, Core PPI monthly report at Oct 13, Initial Jobless Claims, EIA Crude Oil Stocks Change at Oct 15, and Retail Sales monthly report at Oct 16 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 1.43% higher than the previous week. Maintaining high at 11089.3 and low at 10506.4 showed a movement of 582 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 upside. A solid breakout above 11269.7 may open a clean path towards 11471.0 and may take a way up to 11852.6. Should 10686.8 prove to be unreliable support, the BTCUSD may sink downwards 10305.2 and 10103.9 respectively. In H4 chart Pennant pattern breakout favors prospects of a bullish trend. Bullish engulfing  pattern formation constructs a bullish outlook for the pair in the upcoming week.