Bitcoin experienced a decline to approximately $84,200 on Wednesday, yet it remains within a previously established range, maintaining its broader bullish stair-step trend.
According to data from CoinDesk, the cryptocurrency fell over 2% from around $86,500 on Tuesday. Despite this dip, Bitcoin is still trading within the $83,000 to $87,000 range that has supported its bullish formation since July.
Vikram Subburaj, CEO of the Indian cryptocurrency exchange Giottus, commented, "The October 7 decline does not invalidate Bitcoin's stair-step rise." This pattern illustrates a series of upward movements followed by periods of sideways trading, resembling a set of stairs on a chart.
In recent months, Bitcoin has seen notable increases, with its trading range shifting from approximately $62,000 to $67,000 from mid-July to August 18, followed by a significant 21% jump over three days. The subsequent range from late August to mid-September was between $76,000 and $81,500, with another increase of 6.6% occurring from September 19 to September 21.
Currently, Bitcoin has stabilized between $83,000 and $87,000. Subburaj noted, "After moving above $81,500, Bitcoin established a new range of roughly $83,000-$87,000. If $83,000 holds, it would indicate that sellers cannot push the price back into its previous trading band."
The vital support level to monitor is around $83,000. A definitive drop below this threshold could disrupt the current stair-step pattern. Subburaj warned that a sustained break below $82,000 to $83,000 would suggest that the breakout from September has failed, possibly leading Bitcoin back to the $80,000 to $81,500 range.
Alex Kuptsikevich, chief market analyst at FxPro, indicated that immediate support is slightly higher, around $84,000, and suggested that a drop below this level could also pave the way towards $80,000.
As of the latest update, Bitcoin is trading near $84,300.