After a terrible start to the weekend, the price of Bitcoin has rebounded on news of a possible deal between the United States and Iran. However, ignoring the potential impact of fresh geopolitical news or events, the current price structure suggests that new investors would catch the falling knife. According to a chart highlighted on the X platform, the price of Bitcoin seems poised to fall to around $72,000, at least in the short term.
Trading the price of BTC in an ascending channel pattern
Prominent chartist Aksel Kibar appeared on the social media platform X to share interesting Bitcoin price chart, suggesting the coin could fall to around $72,500. This featured chart shows the formation of an ascending channel on BTC’s daily time frame over the past few months.
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In context, an ascending channel is a technical analysis pattern characterized by two main (sloping upward) trend lines: an upper line connecting higher highs and a lower line connecting higher lows. Within this framework, the upper bound acts as resistance, while the lower trend line provides support for the asset price (ie, the price of Bitcoin).
Typically, the ascending channel shows the persistence of an uptrend, with the price of Bitcoin forming multiple higher highs and higher lows since February. However, the top cryptocurrency recently hit a high of around $82,500 and is currently undergoing a recovery that could see its value drop as low as $72,500.
The thing to watch is what happens on the lower bound if the price of Bitcoin falls to $72,500 over the next few days. On an optimistic note, the leading cryptocurrency could recover and head back towards the upper trendline if this prominent support level remains strong.
In this case, the resistance area to watch would be just above $86,000, where a confluence of the 365-day moving average and the upper boundary line would likely occur. The market leader could enjoy further significant upside if Bitcoin price breaks above this resistance area.
However, there is also a chance that the price of BTC could lose support at $72,500, which could trigger a wave of bearish pressure. If this scenario plays out, the top cryptocurrency could fall as low as $60,000, where Kibar thinks a short-term reversal could occur.
In any case, Kibar noted that he would only consider entering a long position above the 365-day moving average, a key indicator of the start of a bull market.
Bitcoin price at a glance
At the time of writing, the price of BTC is around $76,762, reflecting a 2% jump in the last 24 hours.
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Featured image from iStock, chart from TradingView
