Bitcoin fell to around $84,200 on Wednesday, but it remains within the recent range, preserving a broader bullish trend.
Bitcoin fell to around $84,200 on Wednesday, but still remains within the range of $83,000 to $87,000. Since July, this range has maintained its stepwise bullish pattern.
Analysts say that the support level around $83,000 is crucial; if it continues to fall below the $82,000 to $83,000 range, it would mean that the breakout in September has failed.
If this support level is breached, Bitcoin could fall back to between $80,000 and $81,500; however, if this level is held, it indicates that sellers will not be able to push the cryptocurrency back into its previous trading range.
Bitcoin BTC was weak on Wednesday, trading at $84,196.23. However, its overall bullish trend remains valid.
According to CoinDesk data, this cryptocurrency fell to $84,200 earlier on Wednesday, a decrease of over 2% from the near $86,500 level on Tuesday. However, it is still trading within the range that has been maintained for the past two weeks, allowing the bullish stair-step trend that has lasted for several months to continue.
The CEO of Indian cryptocurrency exchange Giottus, Vikram Subburaj, stated to CoinDesk: "The decline on October 7th did not negate Bitcoin's step-by-step upward trend."
Since July, Bitcoin has been climbing within a series of gradually rising sideways ranges. When viewed on a chart, it resembles a set of stairs, which is why it is referred to as a stair-step pattern. As shown in the accompanying image, sharp rises correspond to moving from one step to the next, while several weeks of sideways trading represent the flat portions between the steps.
From mid-July to August 18th, Bitcoin traded around $62,000 to $67,000, and then rose by 21% within three days.
The next phase of trend appeared from late August to mid-September, with a range of about $76,000 to $81,500. Subsequently, there was another sudden rise, with a cumulative increase of 6.6% from September 19 to September 21.
Thereafter, Bitcoin has remained within the range of approximately $83,000 to $87,000.
Subburaj indicates that after breaking above $81,500, Bitcoin has formed a new range of approximately $83,000 to $87,000. If $83,000 can be held, it will signify that sellers are unable to force the price back down to the previous trading range.
The key level that needs close attention on the downside is near $83,000. If it clearly breaks below that level, the stair pattern will at least come to an end for now.
According to Subburaj, if it continues to fall below the $82,000 to $83,000 range, it will indicate that the breakout in September has failed, and the $80,000 to $81,500 range will once again come into focus.
FxPro Chief Market Analyst Alex Kuptsikevich stated that the support level is slightly higher, around $84,000; if it falls below that level, it will open the way for $80,000.
As of press time, the BTC transaction is around $84,300.
