BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Good morning friends !
Today, we are looking to the weekly time frame on which, last week price action triggered a bullish engulfing pattern.
In addition, W1 closing (@ 35428) was above an important resistance level (34'970) already mentioned in my previous analysis
which may force to a view reassessment of the situation, depending of the followup !
Nevertheless, as you know, any breakout should always been confirmed and as we look at a weekly chart, a lot of things could happen until
the next weekly closing...
We also can see a breakout of the former downtrend line resistance and not surprising, the level of the breakout coincides roughly with
the level of TS at around 34'970.

Therefore, this former resistance level (34970) became now the new support level to watch at very carefully !!!!
Indeed, I would warn about potential "mirror effect) following this sharp upside move seen over the last couple of hours; a failure
to stay and hold above 34'970 would confirm a potential "bull trap".
Looking on the upside, firstly, 40'000 should again be seen as "THE PSYCHOLOGICAL" resistance to break ahead of the 38.2% Fib ret @ 42'465; above, the next significant
level of 44'435 ( MBB ) and finally KS (46'747) which is also the 50% Fibonacci retracement of the 64895-28600 downside move.
Watch carefully at the shorter time frame to detect potential bearish divergences which could be the first signal (s) of a reversal price action or upside trend continuation.
Watch also daily clouds (very thick currently) ! BTC needs to clearly move above the clouds, which should also be confirmed by an upside breakout of the Chikou (lagging span) too.

Technical analyst Expert since 1991. Member of the Swiss Association of Market Technicians (SAMT).