Bitcoin’s retreat on Wednesday has so far left its broader upward structure unchanged, with the cryptocurrency still holding within the latest consolidation range.
BTC dropped to roughly $84,200 early Wednesday, more than 2% below its level near $86,500 on Tuesday, according to CoinDesk data. The decline, however, kept bitcoin inside the $83,000-$87,000 band that has defined trading over the past two weeks.
“The October 7 decline does not invalidate Bitcoin’s stair-step rise,” Vikram Subburaj, CEO of Indian crypto exchange Giottus, told CoinDesk.
The pattern has been developing since July, with bitcoin moving through successive periods of sideways trading before making sharp advances to higher levels. Each consolidation zone has formed above the previous one, creating the staircase-like structure.
Bitcoin spent the period from mid-July to Aug. 18 trading around $62,000-$67,000. It then surged 21% over three days, establishing a higher range.
The cryptocurrency next consolidated between roughly $76,000 and $81,500 from late August through mid-September. Another rally followed, with BTC gaining 6.6% between Sept. 19 and Sept. 21.
Bitcoin has since remained largely confined to the $83,000-$87,000 range.
“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 now a key test for the bullish structure. A decisive move below the level would interrupt the current stair-step pattern, at least temporarily.
Subburaj said a sustained break through the $82,000-$83,000 zone would suggest that the September breakout had failed and could push bitcoin back toward $80,000-$81,500.
FxPro chief market analyst Alex Kuptsikevich identified $84,000 as a higher support level to watch. A break below that point could increase the risk of a move toward $80,000, he said.
BTC was trading around $84,300 at the time of writing.
