Bitcoin had a bounce off the low 800's the problem is the majority of those orders are market and not limit meaning the new limit bids are now relatively weak in comparison to all the market orders recently placed.

What this translates to is watch out for all the people placing those market orders trying to profit with no one to buy and thin support to fall on. If you place a market order on a bounce you need to be literally the first person to do it because there will be a lot of people without a chair when the music stops.

Watch for the next leg down when the market guys begin to panic.

You will observe this after a lot of market orders are placed on a bounce and weak buying appears as soon as the market guys start to see red flashing sell orders come in you will then observe lots of asks suddenly appear or simply a large sell off.

This is how you know the panic will soon begin.