As last week's market update anticipated, bitcoin followed the bullish trend to around USD $9,200. But since then, the leading cryptocurrency has been retracing.

Analysts including BitMEX's Arthur Hayes, trace the dip to the selling of bitcoin ahead of China’s lunar New Year. Despite the ban, Chinese traders are still thought to have a big presence in the markets, and each year brings fresh debate on the impact of the New Year celebrations on price.

On the daily chart, the price is sitting at a key support level around USD $8,300 where the top of the downward channel of the past six months intersects with a former horizontal resistance level. For the bullish outlook to remain intact, price needs to stay above the bottom of this support area at around USD $8,150.

See full market update here.