Well, in my update a couple of days ago I just had to write that I was starting to believe the recovery which started on July 21st could be more than just a bear market bounce. I actually wrote, "I am starting to believe that this could be the real thing, a new bull market." After writing that I even joked "now bitcoin will dump tomorrow", it looks like I was off by one day!
Bitcoin Daily Chart
Looking at the daily chart you can see just how massive today's candle is, it is the largest candle since May 19th. Moving forward I would like to see bitcoin start recovering fairly quickly, it has already been about 8 hours since it bottomed and the price has barely moved. That worries me a bit, it seems like buyers aren't too anxious to jump back in which is never a good sign. Also, today's candle reminds me of the candle from May 12th which was the start of the huge decline in May. As of right now, I would say that the warning about the recovery being nothing but a bear market bounce looks to have been right. Although, we will just have to watch how bitcoin responds over the next week or so.
One good thing I could point out is that bitcoin did recover enough to be above the daily 200 SMA which has been an important moving average in the past to be above. To be honest, this large of a dump will have done quite a bit of technical damage to the chart so I am kind of doubtful that bitcoin can recover from this. Time will tell though, at this point all we can do is watch and see how buyers respond.