From CoinDesk · By Omkar Godbole
Bitcoin fell to about $84,200 on Wednesday but remained within the $83,000-to-$87,000 range that has preserved its bullish stair-step pattern since July.
Analysts said support near $83,000 is crucial, with a sustained break below $82,000 to $83,000 signaling that September’s breakout has failed.
If that support gives way, Bitcoin could retreat toward $80,000 to $81,500, while holding it would suggest sellers cannot push the cryptocurrency back into its previous trading range.
Bitcoin BTC$84,195.81 is on the back foot Wednesday. Its bigger bullish pattern is still holding.
The cryptocurrency fell to $84,200 early Wednesday, down over 2% from near $86,500 on Tuesday, according to CoinDesk data. But it's still trading inside the range it has held for the past two weeks, and that keeps a months-long bullish stair-step trajectory alive.
"The October 7 decline does not invalidate Bitcoin's stair-step rise," Vikram Subburaj, CEO of Indian crypto exchange Giottus, told CoinDesk.
Since July, bitcoin has climbed in a series of flat ranges, each higher than the last. On a chart, it looks like a set of stairs, which is why it's known as a stair-step pattern. As seen in the feature image, the sharp rallies are the climb from one stair to the next, and the weeks of sideways trading are the flat steps in between.
From mid-July to Aug. 18, it traded between roughly $62,000 and $67,000. Then it jumped 21% in three days.
The next step ran from late August to mid-September, between about $76,000 and $81,500. Another sudden jump followed, a 6.6% gain from Sept. 19 to Sept. 21.
Since then, bitcoin has held between about $83,000 and $87,000.
"After moving above $81,500, Bitcoin established a new range of roughly 83,000-87,000. If $83,000 holds, it would show that sellers cannot force the price back into its previous trading band," Subburaj said.
The key level to watch on the downside is near $83,000. A clear break below there would end the staircase, at least for now.
A sustained break below $82,000 to $83,000 would signal that the September breakout has failed and would bring $80,000 to $81,500 back into play, Subburaj said.
Alex Kuptsikevich, chief market analyst at FxPro, said support is somewhat higher, around $84,000, and that a break below it would open the door to $80,000.
As of this writing, BTC is trading near $84,300.