BITCOIN ANALYSIS - START OF THE SELL OFF?

SUMMARY

The previous 24hrs have been difficult for traders and investors who had their sites set on striking the $8,600, with prices trading below $8,000 for the past few hours. Since price was manipulated early last week the market has been very volatile and its next move has been very difficult to predict.

When we go down to the 1hr timeframe is appears price has been rejected at the $8,320 area multiple times over the past few days until today when it finally bounce away from this level, pushing prices back down towards the major support/resistance level of $7,800. As the weekend are traditionally fairly stagnant compared to during the week, i believe we could see price steadily fall closer towards this level.

This movement to the downside could be potentially be a good move for Bitcoin, only if price can find strong support at $7,800. If price can find support at $7,800 it would have given the market a breather after the huge rise in price. This could lure traders and investors to pour their money into the markets and push price to a retest of the $8,600 level.