Analyst Rekt Capital recently delved into the question: Is Bitcoin headed for a 40% correction? He has been discussing this topic for a while now, and in their latest video, he explored the patterns of corrective periods in the Bitcoin cycle. The analyst looked at the duration of these corrections, how long they typically last, and how they affect the current cycle compared to historical norms.
In November 2022, he identified only five major corrections in this cycle. Previous pullbacks from the bear market bottom in November 2022 ranged from 23% to 22%. However, the recent correction in April 2024, which started as an 18% pullback, has deepened significantly.
Rekt Capital suggests that instead of viewing it as two separate 18% retraces, it’s better understood as one extended corrective period. This pullback has become the deepest in this cycle, surpassing the previous 23% correction.
Rekt Capital said that historically, when Bitcoin approached around a 20% downside, it presented an excellent buying opportunity before reversing back upwards. With this correction now deeper than 20%, they see it as an even better opportunity. They believe there’s not much more downside left, estimating it to be around 24%.
Previously, the Bitcoin corrective periods lasted from 21 to 63 days. The current correction, spanning 49 days from March to now, is becoming one of the longest in the cycle, nearing the two-month mark. Rekt Capital sees this as a sign that the correction may soon reach its bottom.
Also Check Out : Bitcoin’s Bottom Out? Arthur Hayes Predicts Gradual Ascent to $70,000
He also discussed the importance of the consolidation period after corrections in the Bitcoin cycle. The analyst noted that such periods typically precede the parabolic phase of the cycle. Despite concerns about the length of the current consolidation, Rekt Capital sees it as an opportunity for Bitcoin to realign with historical halving cycles, potentially leading to a bull market peak in mid-September to mid-October of 2025.
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