Trading expert projects a major Bitcoin pullback to this level post-halving

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A trading expert anticipates a significant Bitcoin downturn to occur after the halving event. Currently, Bitcoin (BTC) is trading below the $70,000 threshold, with market sentiment appearing uncertain due to short-term volatility in the primary cryptocurrency. Over recent weeks, maintaining the $70,000 level has been crucial for Bitcoin's progress towards reaching the coveted $100,000 milestone.

In line with this, a cryptocurrency trading specialist recently proposed that Bitcoin might be gearing up for a substantial decrease in value post-halving, potentially falling below $60,000. This suggestion comes from the pseudonymous analyst TradingShot, who shared their insights in a TradingView post on April 4.

The analysis, based on a one-week timeframe, indicates that Bitcoin's trajectory could undergo a correction towards the 0.382 Fibonacci retracement level. The expert referenced historical patterns, highlighting that previous corrections have seen Bitcoin retreat towards this level measured from previous lows.

According to the leading analyst, Bitcoin has been following an upward channel trend since hitting bottom in November 2022 during the FTX collapse. The market strategist pointed out that each successive bullish leg to higher heights has shown slightly weaker performance.

By observing a diminishing rate in percentage gains for each higher high, the expert predicted that the next higher high may experience a 2% decrease.

Taking into account this model, TradingShot suggested the likelihood of a pullback to below $60,000 post-halving, before a potential new rally drives Bitcoin towards $100,000. Despite Bitcoin's dip at the beginning of April, it had a robust first quarter. However, the recent drop below $70,000 coincided with notable performances in other sectors of the economy.

For instance, Bitcoin's correction coincided with an increase in U.S. Treasury yields, which reached their highest level of the year, while the dollar continued to exhibit strength. Although U.S. economic data has been positive, concerns regarding inflation persist, likely influencing decisions on Federal Reserve interest rates.

At the time of writing, Bitcoin was trading at $66,314, showing a modest rally of less than 0.5% over the past 24 hours. However, on the weekly chart, BTC has seen a 6% decline. Meanwhile, Bitcoin investors are closely monitoring its short-term price trajectory, with sustaining trading above the $65,000 support level potentially propelling Bitcoin towards the $70,000 mark.