A well-known crypto analyst, Rekt Capital, has issued a warning regarding a possible significant price correction for Bitcoin (BTC). The analyst, who previously forecasted Bitcoin’s pullback before its block reward halving, now suggests that the leading cryptocurrency might experience a price drop exceeding 8% from its current value.
Will Bitcoin Face a Deep Correction?
Rekt Capital pointed out that if Bitcoin undergoes a correction comparable to the deepest one of 23.8% in this cycle, its price could fall to approximately $55,000. This prediction is based on historical trends identified in Bitcoin’s price behavior during similar market phases. However, the analyst mentioned that such an extreme scenario might not necessarily happen.
The possibility of a steep decline exists, but it is not the most probable outcome at this point in the cycle, according to the analyst. He indicated that Bitcoin might have already reached a local bottom or could be experiencing a milder correction. The deepest correction in this cycle took place between late April and early May, surpassing previous pullbacks, including a major correction at the start of 2023.
How Likely is Another Major Decline?
Rekt Capital observed that it took nearly six months for the recent deep correction to exceed the prior one. Thus, he considers another record-breaking correction unlikely to happen so soon, merely a month and a half after the last. He believes it is more realistic to expect either the current level to mark the bottom or for Bitcoin to undergo a slight additional pullback. Investors should be ready for these possibilities.
Investor Insights
- Monitor Bitcoin’s price closely for signs of either a bottom formation or a mild pullback.
- Prepare for potential market volatility, especially if historical patterns repeat.
- Consider diversifying to mitigate risk associated with Bitcoin’s price fluctuations.
Current State of Bitcoin
As of now, BTC is trading at $60,958, showing a 0.43% increase in the last 24 hours. The price has dropped more than 5% over the past week, leading to concerns among investors about the potential for further declines.
Despite these concerns, Rekt Capital’s analysis suggests that while significant corrections are common in Bitcoin’s market history, the chance of another major short-term decline remains low.