Bitcoin Buyers Defend Breakout Area as Price Trades Lower

Bitcoin's price has been trading modestly lower after an earlier attempt to move higher lost momentum. The cryptocurrency reached a high of $85,238 before falling to $83,161 and is currently near $83,787, down about $600 or 0.71% on the day.

The technical question is whether buyers can defend the breakout from earlier this week. On Tuesday, Bitcoin moved above a swing area between $81,517 and $82,833 and extended its gains to about $87,335 before fading out.

Buyers have defended the breakout area, with yesterday's low of $83,161 remaining above $82,833. This retest is giving traders a chance to see if the former ceiling can become a floor, and as long as Bitcoin stays above $82,833, buyers can argue that the pullback is a test of support.

However, if Bitcoin breaks below $82,833 and then moves through the lower end of the swing area at $81,517, the picture changes. Traders who bought the breakout would be holding a losing position, and some may look to exit, adding to selling pressure.