Is this week’s 15% pullback for Bitcoin likely?

With the beginning of the new trading week’s Asian trading session, the price of bitcoin is not displaying any strong momentum. If BTC loses its crucial support level at $26,555, the current consolidation will develop into a selling frenzy.

The bearish thesis would be refuted if the psychological threshold of $30,000 was decisively broken on a longer time horizon. During the past two weeks, the price of bitcoin has been unable to clear a significant obstacle, which has caused a close consolidation.

BTC has given investors an astounding 72% return as of the first quarter of 2023’s end. Yet, the Asian session traders appear to be booking profits at the beginning of the new week in quarter two. Will this downward trend continue and turn into a weekly sell-off?

The close relationship between the price of bitcoin and the macroeconomic forecast was largely overcome in March, producing gains of 32%. As a few traditional banks began to fail, these newly discovered “inflation hedge” and “uncorrelated asset” narratives served as the primary motivators of this surge.

In any case, the price of Bitcoin appears to be in a rut with no clear trend. BTC has been fluctuating above the range high on March 30 and between $28,881 and $26,555 for the past two weeks or so.

Although a fall below this level has not been confirmed, Bitcoin may revisit the range low this week. A sell-off would most likely start if BTC delivers a significant four-hour candlestick closure below the aforementioned support pattern.

Around $24,201 and $23,078 respectively, the 50% and 62% retracement levels are two significant locations where buyers are most likely to join in. For sidelined buyers who are waiting to accumulate, these levels are favourable.

On the other side, it will indicate a lack of commitment from sellers if the price of Bitcoin bounces off the range bottom at $26,555. Should BTC successfully reverse the psychological milestone of $30,000, it would disprove the bearish thesis and entice slack purchasers to stockpile BTC at market rates. Bulls would benefit from such a move, which might spark a rally that revisits the $32,661 mark.