GEMINI:BTCUSD   Bitcoin / U.S. Dollar
The drop from 7700 level(yellow) represented a lack of buyers at that level that necessitated such a decline in price. Price is back at that level after a significant rally in price to a price level where the chart tells us there was a major selling activity.
I for one would not be buying bitcoin at these prices. Wait for price to break 8210 which will signal a break out higher or take a low risk short with a stoploss above 8210 which might pay out if the bias pans out.