After a bad start to the weekend, the price of Bitcoin once again jumped back to life on the back of news of a possible agreement between the United States and Iran. However, ignoring the potential impact of new geopolitical news or events,… Current price structure It indicates that new investors will catch the falling knife. According to a chart highlighted on the X platform, the price of Bitcoin appears headed to fall to around $72,000, at least in the short term.
BTC price traded in an ascending channel pattern
Prominent chart artist Aksel Kibar has taken to the social media platform X Share Interesting Bitcoin price chart, suggesting that the coin may be on its way to falling to around $72,500. This highlighted chart shows the formation of a bullish channel on the daily time frame for BTC over the past few months.
Related reading
For context, an upward channel is a technical analysis pattern characterized by two main (upward sloping) trend lines: the upper line connecting higher highs and the lower line connecting higher lows. Within this framework, the upper border acts as resistance while the lower trend line provides a support cushion for the asset price (i.e. Bitcoin price).
Typically, an ascending channel shows a continuation of an upward trend, with Bitcoin price forming several higher highs and higher lows since February. However, the leading cryptocurrency recently formed a swing high around $82,500 and is currently… It undergoes a reversion process This could drop its value to $72,500.
What to watch is what happens at the lower end if Bitcoin drops to $72,500 over the next few days. On the upside, the major cryptocurrency could bounce back and head towards the upper trend line if this distinct support level remains strong.
In this case, the resistance area to watch would be just above $86,000, where there will likely be a confluence of the 365-day moving average and the upper boundary line. The market leader could enjoy further significant upside if Bitcoin price breaks through this resistance zone.
However, there is also the possibility that BTC price may lose The support is at $72,500, which could trigger a wave of downward pressure. If this scenario plays out, the flagship cryptocurrency could fall to as low as $60,000, where Kibar believes a short-term reversal could be forming.
However, Kibar indicated that he would only consider entering a long position above the 365-day moving average, a leading indicator of the beginning of a bull market.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is around $76,762, reflecting a 2% jump over the past 24 hours.
Related reading
Featured image from iStock, chart from TradingView
