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.
