Bitcoin Pulls Back, but Its Broader Bullish Trend Remains Intact

Bitcoin pulled back to around $84,200 on Wednesday but remained within its established trading range, leaving its broader bullish stair-step structure intact.

The cryptocurrency was under pressure after falling more than 2% from Tuesday’s level near $86,500, according to CoinDesk data. Despite the decline, bitcoin continues to trade within the range it has maintained for roughly two weeks, preserving a bullish pattern that has been developing for months.

“The October 7 decline does not invalidate Bitcoin’s stair-step rise,” Vikram Subburaj, CEO of Indian crypto exchange Giottus, told CoinDesk.

Bitcoin’s price action since July has consisted of a series of sideways ranges followed by sharp upward moves, with each new range forming above the previous one. This creates a stair-like structure on the chart. The strong rallies represent the moves to higher levels, while the periods of consolidation form the individual steps.

Between mid-July and Aug. 18, bitcoin traded largely between $62,000 and $67,000 before surging 21% over the following three days.

The next consolidation phase lasted from late August through mid-September, with BTC moving between roughly $76,000 and $81,500. Bitcoin then climbed another 6.6% between Sept. 19 and Sept. 21.

Since that move, the cryptocurrency has remained within a range of approximately $83,000 to $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 $83,000 area is therefore an important downside level. A decisive move below it would disrupt the current staircase structure, at least temporarily.

Subburaj said a sustained decline through the $82,000-$83,000 zone would indicate that the September breakout had failed and could bring the $80,000-$81,500 area back into focus.

Alex Kuptsikevich, chief market analyst at FxPro, sees support at a somewhat higher level around $84,000. A break beneath that area could expose bitcoin to a move toward $80,000, he said.

At the time of writing, BTC was trading near $84,300.