Bitcoin rise tests support level formed in early September

Bitcoin has entered a period of consolidation after hitting a high of $ 15,975 last week.

The cryptocurrency rebounded between those highs and lows of around $ 14,500 due to the volatility of the Price in US dollars and other macroeconomic markets.

The investors around the world, are trying to deal with a Biden presidency and the news that a pandemic vaccine is potentially imminent.

While Bitcoin he maintains himself near the peaks

, the asset is approaching a significant level of technical support implemented in September.

This technical level is important, because if the main cryptocurrency loses it, a strong correction could follow. The technical level is a parabolic uptrend, suggesting that a correction could result in a 60-80% correction of the bullish movement.

Bitcoin is testing a fundamental support level

the Bitcoin rally in recent weeks it has often been described as a parable. When an asset recovers 50% within a month, what are you supposed to call it?

Although a consolidation is to be expected, Bitcoin is set to test the support of the dish that formed in early September to take it so high.

If Bitcoin loses the parabola, the wisdom of conventional technical analysis would suggest that the cryptocurrency could retreat 60-80% from the upper parabolic move. Applied to Bitcoin’s current situation, this would suggest a move towards the $ 11,000-12,000 region, which analysts say Bitcoin should reconfirm as support before climbing.

Luckily for the bulls, the chart also suggests that bitcoin is forming an ascending triangle pattern that almost perfectly matches the parabola. Ascending triangles are bullish graphical patterns that are often seen in bull markets. They often break higher after an asset is trading in a tightening range.

Chart of BTC's price action over the past three months with analysis by crypto trader Tyler Coates (@Sawcruhteez on Twitter).
Source: BTCUSD from TradingView.com

Analysts remain optimistic

Analysts are bullish on Bitcoin’s outlook here.

A trader recently said that he is considering moving to $ 17,000 or $ 18,000 as Bitcoin maintains key support levels on a weekly basis:

“I think there’s a good chance bitcoin will go over $ 17,000 and even $ 18,000 over the next 10 days (next weekly candle). We expect a decent halftime blast and relax a bit and absorb the ATH cluster feels so good… The path to $ 18k or ATH wick seems to be the path of least resistance. Nobody wants to sell until then and everyone buys sauces. The easiest way to balance the market is to do it quickly and then let the market move a bit.

There are also fundamental news events like billionaire investor Stanley Druckenmiller backing Bitcoin that are expected to lead to a rise.