Bitcoin’s Next Major Correction Could Erase Recent Gains
In a shocking analysis that has sent ripples through the crypto community, prominent analyst Tony Severino predicts that Bitcoin’s current rally to $91,880 could be setting up for a massive 77% correction to $25,000 levels.
Historical data shows a consistent pattern: after each Bitcoin bull run, severe corrections follow. The analysis reveals three major historical drawdowns:
- 2013-2015: 86.64% decline
- 2017-2018: 84.04% decline
- 2021-2022: 77.57% decline
The Case for $160,000 Before the Drop
Before this potential correction, Severino forecasts Bitcoin could reach an all-time high of $160,000 – representing a 74.1% increase from current levels. This projection aligns with Bitcoin’s historical tendency to make significant peaks following halving events.
Decreasing Severity of Bear Markets
A notable pattern emerges from the data: each bear market has been approximately 4% less severe than its predecessor. This trend suggests the next correction could be milder, potentially ranging between 61.8% to 74% rather than the historical 77-84% drops.
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Market Implications and Risk Factors
Current market conditions show Bitcoin trading at $91,880, having recently recovered with a 7.05% daily gain. The potential for a significant correction poses serious risks for investors, particularly those using leverage or holding large positions.
Investors should consider implementing strict risk management strategies and potentially preparing for a multi-year bear market scenario. The analysis suggests the bottom could form between $25,000 and $17,000, representing critical levels for future accumulation.
Source: Bitcoinist