After a rough start to the weekend, Bitcoin’s price bounced back following news of a possible agreement between the United States and Iran. But setting aside the impact of fresh geopolitical events, the current price pattern suggests that new investors might be trying to catch a falling knife. According to a chart shared on X, Bitcoin’s price seems headed for a drop to around $72,000, at least in the short term.
Bitcoin Price Trading in an Ascending Channel Pattern
Well-known chart analyst Aksel Kibar posted on X an interesting view of Bitcoin’s price, suggesting it could fall to about $72,500. The chart shows an ascending channel forming on Bitcoin’s daily timeframe over the past few months.
For context, an ascending channel is a technical analysis pattern with two upward-sloping trendlines: the upper line connects higher highs, and the lower line connects higher lows. In this setup, the upper line acts as resistance, while the lower line provides support for Bitcoin’s price. Typically, an ascending channel indicates a continuing upward trend, with Bitcoin forming higher highs and higher lows since February.
However, Bitcoin recently hit a swing high around $82,500 and is now pulling back, which could bring its price down to as low as $72,500. The key is to watch what happens at the lower boundary if Bitcoin falls to that level over the next few days.
On a positive note, if this support level holds strong, Bitcoin could bounce back and head toward the upper trendline. In that case, the resistance to watch would be just above $86,000, where the 365-day moving average and the upper boundary might meet. If Bitcoin breaks above this resistance, it could see further significant gains.
But there’s also a chance Bitcoin could lose the $72,500 support, which might trigger a wave of bearish pressure. If that happens, the price could fall as low as $60,000, where Kibar thinks a short-term reversal could occur. In any case, Kibar noted he would only consider buying above the 365-day moving average, a key indicator of a bull market’s start.
Bitcoin Price at a Glance
As of now, Bitcoin is trading at around $76,762, up 2% in the last 24 hours.
Featured image from iStock, chart from TradingView.
Frequently Asked Questions
Here is a list of FAQs based on the scenario that Bitcoins price might drop to 72500 before bouncing back
BeginnerLevel Questions
1 Is Bitcoin going to crash to 72500
No one can predict the future but the analysis suggests a potential drop to that level not a crash Its seen as a temporary dip before a likely recovery not a permanent loss of value
2 Why would Bitcoin drop to 72500 if its supposed to go up
Markets rarely go straight up A drop to 72500 could be a healthy correctiona pullback that shakes out nervous traders and resets the market before the next upward move
3 How low is 72500 compared to where Bitcoin is now
It depends on the current price If Bitcoin is trading at 80000 a drop to 72500 is about a 910 decline Thats a normal everyday dip in crypto
4 Should I sell my Bitcoin if it drops to 72500
That depends on your strategy If you believe in the longterm value many traders see dips as buying opportunities not sell signals Panicselling often locks in losses
5 What does bounce back mean in this context
It means the price hits 72500 finds strong support and then starts rising againpossibly back toward higher levels like 80000 or more
Intermediate Advanced Questions
6 What technical indicators suggest a drop to 72500 is likely
Analysts often point to support levels from previous price action Fibonacci retracement levels or a key demand zone where large buyers historically stepped in
7 Is 72500 a support or resistance level
In this scenario 72500 is a support levela price floor where buying pressure historically stops the decline If it breaks below it could become a future resistance level
8 Could the bounce fail and Bitcoin go lower than 72500
Yes No level is guaranteed If 72500 breaks with high volume and no buyers the next major support might be