Bitcoin hit a six-month low to start the week but is bouncing back today in a nearly $500 rally to $7600.

One catalyst appears to be a report saying the Swiss government is working on laws that are more positive for blockchain.

Another theory is that recent selling was driven by the sale of Bitcoin from a theft in China and that’s dried up now so the dip-buyers are stepping in.

Technically, it’s undoubtedly oversold in the short-term but the break below the October lows is concerning. We could get a rebound to $8000 or $8500 before the selling kicks back in.