The prospect of a possible deal between the US and Iran caused the price of Bitcoin to soar again after a dismal start to the weekend. However, the existing pricing structure implies that new investors would be catching a falling knife, ignoring the possible impact of recent geopolitical news or events. A chart on the X platform indicates that the price of Bitcoin is likely to decline to about $72,000, at least temporarily. Aksel Kibar shared an intriguing chart of the price of Bitcoin on the social media site X, speculating that the coin may be headed towards $72,500.
The building of an ascending channel on the BTC daily timeframe over the previous few months is depicted in this highlighted chart. The upper line that connects the higher highs and the lower line that connects the higher lows are the two main (upward-sloping) trendlines that define an ascending channel in technical analysis. In this structure, the lower trendline serves as a support cushion for the asset’s price (i.e., the price of Bitcoin), while the upper boundary serves as resistance. The Bitcoin price has formed several higher highs and higher lows since February, and an ascending channel typically indicates the continuation of an upward trend.
However, the leading cryptocurrency is currently going through a correction that could see its value drop as low as $72,500. It just set a swing high around $82,500. If the price of Bitcoin does drop to $72,500 in the next days, it will be interesting to see what occurs at the lower barrier. Positively, if this highlighted support level remains solid, the flagship cryptocurrency may recover and push back towards the upper trendline. In this instance, the resistance area to keep an eye on would be somewhat above $86,000, where the upper boundary line and the 365-day moving average would probably converge.
If the price of Bitcoin breaks over this area of resistance, the market leader may see even more substantial gains. But there’s also a potential that the price of Bitcoin will drop below the $72,500 support level, which could lead to a surge of negative pressure. The leading cryptocurrency might drop as low as $60,000 if this scenario comes to pass, which is where Kibar believes a brief reversal could occur. In any event, Kibar stated that he would only think about starting a long position above the 365-day moving average, which is a key sign that a bull market is about to begin.