Analyst Rekt Capital in his latest video Bitcoin He discussed that it could be heading towards a 40% correction. Rekt Capital examined correction periods in the Bitcoin cycle, focusing on the duration of these corrections, how long they typically last, and how they impact the current cycle compared to historical norms.
In November 2022, only five major corrections were detected in this cycle. Retracements prior to the bear market bottom in November 2022 ranged from 23% to 22%. However, the recent correction, which started as an 18% pullback in April 2024, has deepened significantly.
Rekt Capital proposes to view this situation as an extended correction period. Because this pullback exceeded the previous 23% retracement, making it the deepest pullback this cycle.
Opportunity in a Downturn: Is It Time to Invest in Bitcoin?
Rekt Capital noted that historically when BTC experienced a 20% decline, it presented an excellent buying opportunity for an upward reversal. They see this correction, now deeper than 20%, as an even bigger opportunity. He thinks there is not much of a decline left and estimates it to be around 24%.
Previously, Bitcoin correction periods lasted between 21 and 63 days. The current correction has lasted 49 days from March to date, making it one of the longest corrections in the cycle, and Rekt Capital considers this as a sign that the correction may soon reach the bottom.
He also discussed the importance of the consolidation period after corrections in the Bitcoin cycle. Such periods typically precede the parabolic phase of the cycle, the analyst noted. Despite concerns about the length of the current consolidation, Rekt Capital sees this as an opportunity for Bitcoin to realign with historical halving cycles, potentially leading to a bull market peak from mid-September to mid-October 2025.
