This type of selling off of this location is considered a failed high (or failed break out) which can be a signal of momentum change, NOT to be confused with a trend change. Based on our LONG only swing trade strategy, the 7695 key support continues to define the broader trend as BULLISH. These situations often stimulate a lot of reaction from bears who focus on smaller time frames, meanwhile it is much too premature to classify Bitcoin as being in a bearish trend.
Over the next few days we are looking for potential bearish momentum to take price back to our first inflection point around 8500. IF price can produce a reversal pattern here, we will be prompted to share a new swing trade long idea. Reward/risk would be very attractive since a bullish retrace back to the 10K is still within reason. IF price clears 7695, THAT is when we will consider making adjustments to our longer term outlook.