BITCOIN ANALYSIS - VERY INTERESTING DAY IN THE MARKET

SUMMARY

For many investors this mornings drop in value would have sent warning signals after the amount of times the market has pumped and then had a major sell off. The first half of the morning saw price close below the $7,800 support level and rally to as low as $7,442 before seeing price find its feet at the minor support level of $7,500 and creeping back up too $7,670 where its currently trading.

The 4hr chart highlights the clear rejection of the $7,500 level before forming a strong bullish engulfing candle to send price back up to $7,670. The most likely short term scenario for me is a retest of the $7,800 and a possible continuation of this bearish movement down to the support of $7,500 and potentially $7,250. It will depend on how price reacts to the $7,800 level as to whether this will play out. On the other hand price could break and close above this resistance level and push back towards $8,000 price range.