A widely followed crypto analyst says that there’s a high chance that Bitcoin (BTC) reverses course after its latest pullback.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 529,900 followers on the social media platform X that based on historical precedence, the crypto king should mount a recovery.
“Bitcoin started its current -15% pullback in week seven of price discovery. The timing of this retrace is in line with historical tendencies. It is the first price discovery correction of this cycle. As a result, it has a high probability of reversal.”
Price discovery is the process by which buyers and sellers determine the fair market value of an asset based on supply and demand, liquidity, and other factors.
Rekt Capital goes on to note that this type of pattern is a regular part of the top crypto asset by market cap’s historical cycle.
“In the 2013 cycle, it took six weeks of upside into Price Discovery before BTC experienced its first major correction in week seven. In the 2017 cycle, it took seven weeks of upside into price discovery before a first major retrace of -34%.
In week eight In the 2020/2021 cycle, BTC rallied six weeks into Price Discovery before BTC’s first meaningful pullback of -16%. And in this cycle, Bitcoin enjoyed upside until week seven before retracing -15%. Out of the ordinary? History says no.”
The trader then says BTC has rebounded nicely from its low support range and will occupy the $91,000 to $101,000 price range “until further notice.”
BTC is $93,803 at time of writing, a 1% decrease during the last 24 hours.
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