Bitcoin
Why is this the best time to buy Bitcoin?
Analyst Rekt Capital recently investigated the question: Is Bitcoin towards a 40% correction? He has been discussing this topic for some time, and in his most recent video he explored corrective period patterns in the Bitcoin cycle. The analyst analyzed the duration of these corrections, how long they typically last, and how they affect the current cycle compared to historical norms.
As of November 2022, it has identified only five major corrections in this cycle. Previous pullbacks from the November 2022 bear market bottom have ranged from 23% to 22%. However, the recent April 2024 correction, which started as an 18% retracement, has deepened significantly.
Rekt Capital suggests that rather than viewing it as two separate 18% pullbacks, it is better understood as an extended corrective period. This pullback became the deepest of this cycle, surpassing the previous 23% correction.
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Rekt Capital said that historically, when Bitcoin approached a drop of around 20%, it presented an excellent buying opportunity before reversing higher. With this correction now deeper than 20%, they see it as an even better opportunity. They believe there is not much more downside left, estimating it to be around 24%.
Previously, Bitcoin’s corrective periods lasted from 21 to 63 days. The current correction, which has spanned 49 days from March until now, is becoming one of the longest of the cycle, approaching the two-month mark. Rekt Capital sees this as a sign that the correction could soon bottom out.
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He also discussed the importance of the consolidation period following corrections in the Bitcoin cycle. The analyst noted that such periods typically precede the parabolic phase of the cycle. Despite concerns about the duration 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 in mid-September to mid-October 2025 .