Bitcoin Pullback Reflects 2017 Patterns, Analyst Claims

Analyst Rekt Capital believes Bitcoin’s recent corrections mimic historical patterns from previous bull markets, particularly 2017. Despite a 32% dip, he suggests patience as this is part of a typical two-stage correction process. He emphasizes that corrections historically precede significant price rallies and reassures investors that current movements do not signify an impending bear market.

In a recent market update, the crypto analyst Rekt Capital compared Bitcoin’s current pullback to the historical price movements seen during past bull cycles, particularly the pattern observed in 2017. He characterised this retracement as a typical yet protracted correction, with Bitcoin remaining on course to reach new heights, despite trader apprehension about current trends.

Rekt Capital identified the cyclical nature of Bitcoin’s behaviour, noting that it often undergoes multiple corrections after establishing new all-time highs. He specifically pointed to the 2017 rally, where Bitcoin experienced pullbacks ranging between 34% and 40% multiple times before hitting its peak. Furthermore, he drew parallels to Bitcoin’s 2013 performance, explaining the inherent volatility during transitions from old highs to new records, while maintaining that the current 32% drop aligns with expected patterns.

The analyst emphasised the importance of maintaining patience during this volatile phase, asserting that extended drawdowns are consistent with Bitcoin’s historical behaviour, allowing for future price discovery momentum. Rekt Capital highlighted that while the current correction may feel prolonged, it is not unusual for the asset, which has a well-documented history of uptrends followed by subsequent retracements.

He provided further analytical depth by examining Bitcoin’s price structure in relation to the 21-week and 50-week exponential moving averages, pointing out the formation of a triangular market configuration as Bitcoin’s price oscillates between these averages. He recalled a similar scenario in mid-2021 that led to a significant drop before a bullish turnaround, predicting that Bitcoin could potentially rally towards the $93,500 mark if it surpasses the 21-week EMA decisively.

Addressing widespread fears of an impending bear market, Rekt Capital reassured investors that current trends do not necessarily indicate a definitive downturn. He recognised the emotional challenge posed by significant price corrections but urged traders to remain resolute, focusing on strong indicators such as historical correction behaviours and moving averages. In his view, the current price action exemplifies the standard trajectory of previous bull cycles, albeit with a deeper initial correction that has frustrated some traders expecting quicker bullish momentum.

Ultimately, Rekt Capital reinforced the notion that reaccumulation phases are integral to a sustainable bull market rather than an onset of a prolonged descent. As of the latest update, Bitcoin is priced at $85,914.