Leading crypto analyst Rekt Capital has identified striking similarities between Bitcoin’s current price action and the 2017 bull market pattern, suggesting BTC could be setting up for another parabolic move toward $93,500 despite the recent pullback.
Historical Pattern Points to Major Bitcoin Rally
In his latest market analysis titled “Where’s The Bitcoin ‘Banana Zone’?”, Rekt Capital examined Bitcoin’s 32% correction through the lens of previous bull cycles. The analyst noted that the current retracement closely mirrors Bitcoin’s behavior during the 2017 bull run, when BTC experienced multiple 34-40% corrections before reaching new all-time highs.
“What we’re seeing now is perfectly in line with historical Bitcoin price action,” explained Rekt Capital. “During the 2017 bull market, Bitcoin underwent at least four significant corrections ranging from 34% to 40% before ultimately reaching its peak.”
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Technical Indicators Support Bullish Outlook
The analysis highlights a crucial technical formation, with Bitcoin’s price currently “sandwiched” between the 21-week and 50-week exponential moving averages. This setup bears a striking resemblance to mid-2021’s market structure, which preceded a significant breakout.
Why This Correction Is Different
Despite concerns about a potential bear market, Rekt Capital maintains that the current pullback is simply part of a healthy bull market cycle. The analyst emphasized that while the correction has been deeper than some expected, it’s setting the stage for the next major price discovery phase.
Price Targets and Next Moves
Based on the technical analysis and historical comparisons, Rekt Capital projects Bitcoin could target $93,500 if it maintains support above the 21-week EMA. This aligns with broader market expectations for Bitcoin’s next major move.
FAQ Section
Q: Is Bitcoin entering a bear market?
A: According to Rekt Capital’s analysis, this is not a bear market but rather a typical correction within a broader bull cycle.
Q: How long could this correction last?
A: While the current correction has been extended, historical patterns suggest it’s nearing completion as price finds support at key moving averages.
Q: What are the key levels to watch?
A: The 21-week EMA serves as crucial support, while $93,500 represents the next major target if Bitcoin maintains its bullish structure.
At time of writing, Bitcoin trades at $85,914, maintaining a strong position despite the recent volatility.