Fix blockquotes

```
>>> foo
> bar
>>> baz
```

this is now a single blockquote as per spec

close #696

lib/rules_block/blockquote.js

@@ -25,7 +25,7 @@ module.exports = function blockquote(state, startLine, endLine, silent) {
       terminate,
       terminatorRules,
       token,
-      wasOutdented,
+      isOutdented,
       oldLineMax = state.lineMax,
       pos = state.bMarks[startLine] + state.tShift[startLine],
       max = state.eMarks[startLine];
@@ -106,7 +106,6 @@ module.exports = function blockquote(state, startLine, endLine, silent) {
 
   oldParentType = state.parentType;
   state.parentType = 'blockquote';
-  wasOutdented = false;
 
   // Search the end of the block
   //
@@ -135,7 +134,7 @@ module.exports = function blockquote(state, startLine, endLine, silent) {
     //    > current blockquote
     // 2. checking this line
     // ```
-    if (state.sCount[nextLine] < state.blkIndent) wasOutdented = true;
+    isOutdented = state.sCount[nextLine] < state.blkIndent;
 
     pos = state.bMarks[nextLine] + state.tShift[nextLine];
     max = state.eMarks[nextLine];
@@ -145,7 +144,7 @@ module.exports = function blockquote(state, startLine, endLine, silent) {
       break;
     }
 
-    if (state.src.charCodeAt(pos++) === 0x3E/* > */ && !wasOutdented) {
+    if (state.src.charCodeAt(pos++) === 0x3E/* > */ && !isOutdented) {
       // This line is inside the blockquote.
 
       // skip spaces after ">" and re-calculate offset

test/fixtures/markdown-it/commonmark_extras.txt

@@ -522,3 +522,53 @@ Coverage, entities with code > 10FFFF. Made this way for compatibility with comm
 <p>�</p>
 <p>&amp;#x1100000;</p>
 .
+
+Issue #696. Blockquotes should remember their level.
+.
+>>> foo
+bar
+>>> baz
+.
+<blockquote>
+<blockquote>
+<blockquote>
+<p>foo
+bar
+baz</p>
+</blockquote>
+</blockquote>
+</blockquote>
+.
+
+Issue #696. Blockquotes should stop when outdented from a list.
+.
+1. >>> foo
+   bar
+baz
+   >>> foo
+  >>> bar
+   >>> baz
+.
+<ol>
+<li>
+<blockquote>
+<blockquote>
+<blockquote>
+<p>foo
+bar
+baz
+foo</p>
+</blockquote>
+</blockquote>
+</blockquote>
+</li>
+</ol>
+<blockquote>
+<blockquote>
+<blockquote>
+<p>bar
+baz</p>
+</blockquote>
+</blockquote>
+</blockquote>
+.