Bitcoin’s Current Dip Echoes 2017 Cycle, Says Analyst

Analyst Rekt Capital highlights Bitcoin’s recent dip mirrors 2017’s corrective phases. He compares the current market conditions to historical trends, asserting that Bitcoin’s pullbacks are common as part of its growth trajectory. Capital encourages patience, noting this period is typical before future price upticks, while reinforcing that no bear market is in sight. BTC is presently valued at $85,914.

Prominent crypto analyst Rekt Capital recently provided insights on Bitcoin’s current price dip, drawing comparisons to the 2017 market cycle. He highlighted that this pullback reflects a series of corrections leading up to parabolic peaks, which he affectionately termed the “banana zone.” He reiterated that although many traders may feel disheartened, the current correction aligns with historical trends and remains on track for future growth.

Capital pointed out that Bitcoin consistently undergoes multiple corrections after breaking into new all-time highs, referencing the notable 34% to 40% pullbacks observed in 2017. Additionally, he mentioned that the 2013 cycle also showed similar fluctuations, indicating that bumpy price movements are commonplace when reaching new peaks. The current 32% drawdown is thus characterised as a typical corrective phase rather than a sign of a bearish trend.

The analyst encouraged patience during this correction, stating that extended downturns do not deviate from Bitcoin’s historical patterns of uptrends followed by retracements. He stressed the significance of enduring these phases, asserting that they pave the way for subsequent price discovery and potential uptrends in the future.

Rekt Capital provided historical context by referencing mid-2017, demonstrating that Bitcoin’s corrections often intensify but may be shallower leading into significant upward movements. He cited the formation of a triangular market structure between the 21-week and 50-week exponential moving averages (EMAs), similar to the patterns observed in mid-2021 before a major bullish breakout.

In addressing fears of an impending bear market, he reassured listeners that this phase does not signal a downturn but rather a necessary reaccumulation towards a broader bull-market scenario. He urged investors to focus on essential indicators and the ongoing price discovery phase, predicting further bullish momentum upon solidifying above the 21-week EMA. As of now, BTC trades at $85,914, with the potential to rise towards $93,500 if current patterns hold.