Bitcoin continues to hold support near key swing area.

<p class="PDq2pG_selectionAnchorContainer" dir="auto">Bitcoin is trading modestly lower after an earlier attempt to move higher lost momentum. The price reached a high of $85,238 before falling to $83,161. It is currently near $83,787, down about $600, or 0.71%, on the day.</p><p dir="auto">The technical question is whether buyers can defend the breakout from earlier this week.</p><p dir="auto">Buyers defend the breakout area</p><p dir="auto"></p><p dir="auto">On Tuesday, Bitcoin moved above a swing area between $81,517 and $82,833 and extended its gains to about $87,335. That upside momentum faded, and the price has since rotated back toward the area it broke through.</p><p dir="auto">Yesterday and again today, buyers stepped in near the top of that zone. Today’s low of $83,161 remained above $82,833.</p><p dir="auto">Why the retest matters</p><p dir="auto">A retest after a breakout gives traders a chance to see whether a former ceiling can become a floor. Buyers who missed the initial move may look to enter near the broken resistance, while traders who bought the breakout want to see that level hold.</p><p dir="auto">As long as Bitcoin stays above $82,833, buyers can argue that the pullback is a test of support. A move back above today’s high at $85,238 would give that argument more weight and bring the high near $87,335 back into view.</p><p dir="auto">The levels that shift control to sellers</p><p dir="auto">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. That could add to the selling pressure.</p><p dir="auto">The next targets would be the 100- and 200-hour moving averages, between $79,926 and $79,365. A break below both moving averages would shift the bias further in favor of the sellers.</p><p dir="auto">For now, buyers have held support, but they have not regained the upside momentum. The swing area is the barometer: stay above it and buyers remain in the game; break below it and the failed breakout becomes the bigger story.</p><p dir="auto">In the video above, I review the Bitcoin technicals and outline the levels that will help determine which side takes control next.</p> This article was written by Greg Michalowski at investinglive.com.
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