Bitcoin's 32% Drawdown Mimics 2017 Bull Cycle, Says Rekt Capital

In a recent market update, Rekt Capital, a prominent crypto commentator, analyzed Bitcoin’s latest price dip by comparing it to previous bull cycles. He noted that the current retracement mirrors the 2017 pattern, which involved multiple corrections before reaching a parabolic peak. Rekt Capital described the current correction as a natural but extended phase, emphasizing that it is still on track despite the discouragement felt by many traders.
Rekt Capital highlighted the cyclical nature of Bitcoin’s price movements, pointing out that historical data shows Bitcoin experiencing two or more corrective periods after breaking into new all-time highs. He cited the 2017 rally, where there were multiple pullbacks ranging from 34% to 40% before the ultimate peak was reached. He also referenced the 2013 bull run, noting that price movements around old highs and immediately following new ones can be bumpy. Despite the current drawdown of 32%, he maintained that additional upside is likely after the corrective period, classifying the market’s present position as part of the first of two probable corrections in the current price discovery phase.
Throughout his analysis, Rekt Capital stressed the importance of patience, noting that prolonged drawdowns are not uncommon for Bitcoin. He provided historical context by looking back at mid-2017 and other phases when Bitcoin underwent repeated downturns ranging from 30% to 40%. These corrections often deepen as the cycle progresses, although the final one before the next major move can sometimes be shallower. He also delved into technical indicators such as the 21-week and 50-week exponential moving averages, suggesting that Bitcoin’s price has begun forming a triangular market structure as it becomes “sandwiched in between the 21-week EMA and the 50-week EMA.”
Rekt Capital drew comparisons to the mid-2021 period, when a similar formation preceded a 55% downside move that eventually broke out into another bullish phase. He predicted that a similar situation could see Bitcoin rally toward the $93,500 level if the move above the 21-week EMA holds. In addressing concerns that the market is entering a bear cycle, Rekt Capital asserted that “it’s not a bear market like everybody is saying.” While he acknowledged the emotional toll of large pullbacks and the prevalence of conflicting signals, he advised keeping a level head and focusing on strong indications such as moving-average confluence, historical correction ranges, and the fact that “we’re in this first price discovery correction” rather than any final downturn. According to his outlook, the crypto’s price is still following the overarching blueprint set by previous bull runs, even if it is “a little bit of a deep one” and has disappointed traders hoping for more immediate parabolic momentum.
Rekt Capital concluded his commentary by stressing that reaccumulation phases are part of a lasting bull-market framework rather than the onset of a prolonged downtrend. He emphasized that what might feel like a prolonged drawdown is not “out of the ordinary” for Bitcoin, which historically endures multiple phases of uptrends and retracements on its way to a peak. “What’s out of the ordinary,” he said, “is that it’s taking longer, but it’s going to enable that next price discovery uptrend in the future.”

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