After a terrible start to the weekend, Bitcoin prices sprang back to life following news of a possible deal between the United States and Iran. However, if we ignore the potential impact of new geopolitical news or events, the current price structure suggests that new investors would be catching a falling knife. According to a chart on the
BTC price trading in rising channel pattern
Prominent chartist Aksel Kibar took to social media platform X part an interesting layout of the Bitcoin price, suggesting that the coin is headed to around $72,500. This highlighted chart shows the formation of a rising channel on BTC’s daily time frame over the past few months.
Related reading
For context, a rising channel is a technical analysis pattern characterized by two major (upward sloping) trendlines: the upper line connecting the higher highs and the lower line connecting the higher lows. Within this framework, the upper limit acts as resistance, while the lower trendline provides a cushion of support for the asset’s price (i.e. the Bitcoin price).
Typically, an ascending channel shows the continued uptrend, with Bitcoin price forming multiple higher highs and higher lows since February. However, the leading cryptocurrency recently reached a swing high around $82,500 and is currently undergoing a retracement that could see its value drop to $72,500.
What we need to pay attention to is what happens at the lower bound if the Bitcoin price falls to $72,500 in the coming days. On an optimistic note, the flagship cryptocurrency could bounce back and return to the upper trendline if this highlighted support level remains strong.
In this case, the resistance area would be just above $86,000, where there would likely be a confluence of the 365-day moving average and the upper limit. The market leader could gain even more upside if the Bitcoin price breaks above this resistance area.
However, there is also a chance that the BTC price loses the USD 72,500 support, which could trigger a wave of bearish pressure. If this scenario plays out, the leading cryptocurrency could fall to $60,000, with Kibar thinking a near-term reversal could occur.
In any case, Kibar noted that he would only consider taking 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 stands at around $76,762, reflecting a 2% increase in the past 24 hours.
Related reading
Featured image from iStock, chart from TradingView