Bitcoin fell to about $83,500 on Wednesday before stabilizing near $84,200, down more than 2% from Tuesday’s high of around $86,500, according to BlockBeats. Even with that pullback, the cryptocurrency is still trading inside the $83,000 to $87,000 range that has taken shape over the past two weeks.
Giottus CEO Vikram Subburaj said BTC has been building a step-like pattern since July through a series of progressively higher consolidation bands. He pointed to a trading range of $62,000 to $67,000 from mid-July to Aug. 18, followed by a 21% jump over three days. Bitcoin then traded between $76,000 and $81,500 from late August to mid-September, before rising another 6.6% between Sept. 19 and 21 and moving into its current $83,000 to $87,000 band.
Subburaj said $83,000 is the key support level at the moment, warning that a confirmed break below it could signal that September’s breakout has failed and open the way for a retest of the $80,000 to $81,500 area. FxPro chief market analyst Alex Kuptsikevich said support near $84,000 is even more important, and a drop below that level could lead BTC toward $80,000.
Bitcoin dropped to about $83,500 on Wednesday and was later trading near $84,200, more than 2% below Tuesday’s high of roughly $86,500, according to BlockBeats.
Even so, BTC remains inside the $83,000 to $87,000 range formed over the past two weeks, and the step-like structure that has developed over several months has not been broken.
Higher consolidation bands have formed since July
Giottus CEO Vikram Subburaj said Bitcoin has been moving in a step-like pattern since July, built through a series of consolidation ranges that shifted higher over time.
From mid-July to Aug. 18, BTC mostly traded between $62,000 and $67,000 before rising 21% over three days. From late August to mid-September, it moved in a $76,000 to $81,500 band, then gained another 6.6% between Sept. 19 and Sept. 21. Since then, it has held within the $83,000 to $87,000 range.
Analysts focus on $83,000 and $84,000 support
Subburaj said $83,000 is the key support level for now. A confirmed break below that mark could mean the September breakout has failed and could send BTC back to test the $80,000 to $81,500 zone.
FxPro chief market analyst Alex Kuptsikevich said the area around $84,000 is the more important support. If that level gives way, Bitcoin could move lower toward $80,000.
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