Bitcoin rallied slightly during the trading session on Tuesday, reaching towards the $7100 level. This was roughly a 2.5% gain, but quite frankly after the selloff that we have seen, and of course the cluster above at the $7500 level, I think that we will eventually see sellers come back into push this market lower. The downtrend line is still very much intact, so I think that the $8000 level will be very resistive as well. Waiting for some type of exhaustive candle above might be the best way to play this market as we should continue to go looking towards the bottom again. Regardless of any positive news, it seems that bitcoin simply cannot pick up any momentum to the upside for a protracted move. At this point, I still believe in the downside although we will get the occasional pop.
for more analysis: http://www.dailyforex.com
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