For context, an ascending 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 boundary acts as resistance while the lower trendline provides a support cushion to the asset’s price (i.e., Bitcoin price).
What to watch is what happens at the lower boundary if the Bitcoin price does fall to $72,500 over the next few days. On an optimistic note, the flagship cryptocurrency could bounce back and forge back towards the upper trendline if this highlighted support level holds strong.
In this case, the resistance region to watch would be just above $86,000, where there would likely be a confluence of the 365-day moving average and the upper boundary line. The market leader could enjoy further significant upside if the Bitcoin price breaks above this resistance region.
In any case, Kibar noted that he would only consider entering a long position above the 365-day moving average, a major indicator of the start of a bull market.
Bitcoin Price At A GlanceAs of this writing, the price of BTC stands at around $76,762, reflecting a 2% jump in the past 24 hours.
