As of this writing, Bitcoin is trading at just under $8,300. It showed some signs of volatility as it trader near $9,700 just hours earlier. There does seem to be decent volume coming in so far as buyers bought the dip. This action seems to confirm a possible new trading range that is similar to a range built in May/June of this year. That range would be $8,500 – $7,500 (yellow box).
In addition, the larger descending channel is still intact (green lines). If the trend continues and this bounce cannot break above $8,500 – $8,800 with volume, it is quite possible Bitcoin will test the lower end of the channel and trade just above $6,500 or so. So the areas to watch are under $7,500 and above $8,500 for short term trading.