After a disastrous start to the weekend, Bitcoin’s price came back to life following news of a potential deal between the United States and Iran. However, apart from the potential impact of fresh news or geopolitical events, the current price structure suggests that recent investors would take up the knife. According to the chart seen on Platform X, Bitcoin’s price appears to be falling to around $72,000, at least in the brief term.

Trading BTC prices in a rising channel formation

Prominent chartist Aksel Kibar spoke out on the X social media platform participation an intriguing Bitcoin price pattern, suggesting that the coin may fall to around $72,500. This highlighted chart shows the formation of an ascending channel on the BTC daily time frame over the last few months.

For context, a rising channel is a technical analysis pattern characterized by two main (upward-sloping) trend lines: an upper line connecting higher highs and a lower line connecting higher lows. In this context, the upper boundary acts as resistance, while the lower trend line acts as a support cushion for the asset price (i.e. Bitcoin price).

Typically, an ascending channel shows the persistence of an uptrend, with Bitcoin price making multiple higher highs and higher lows since February. However, the most vital cryptocurrency recently peaked at around $82,500 and is currently undergoing a correction that could see its value drop to as low as $72,500.

What’s worth watching is what happens on the lower end if Bitcoin’s price drops to $72,500 in the next few days. Optimistically, the flagship cryptocurrency could rebound and head back towards the upper trendline if this highlighted support level holds.

In this case, the area of ​​resistance worth watching would be just above $86,000, where the 365-day moving average and the upper boundary line would likely converge. The market leader could enjoy further significant growth if Bitcoin’s price breaks above this resistance area.

However, there is also a chance that the BTC price could lose the support at $72,500, which could trigger a wave of bearish pressure. If this scenario comes to fruition, the main cryptocurrency could fall as low as $60,000, where Kibar believes there could be a short-term price reversal.

In any case, Kibar noted that he would only consider going long above the 365-day moving average, the main indicator for the start of a bull market.

Bitcoin price at a glance

At the time of writing, BTC is trading at around $76,762, reflecting a 2% enhance over the last 24 hours.

Featured image from iStock, chart from TradingView