Bitcoin's Price Discovery Uptrend Faces Potential Correction

18/08 01:23

According to Cointelegraph, Bitcoin (BTC) is entering the seventh week of its latest "price discovery uptrend," with the price hovering below $120,000. Analysis from trader and analyst Rekt Capital suggests that Bitcoin may soon experience a correction, consistent with historical patterns observed in previous halving cycles. Typically, after each halving event, Bitcoin undergoes a series of uptrends followed by corrections. Rekt Capital notes that the second uptrend usually concludes between the fifth and seventh week, indicating that a correction could be imminent. Bitcoin recently reached an all-time high of $124,500, but risks maintaining this peak if it adheres to historical trends. A chart shared by Rekt Capital earlier in the year indicated a potential upside target for the second uptrend at just below $160,000. However, historical data shows that corrections have occurred at various points in past cycles, with one starting in Week 8 in 2017, another in Week 6 in 2021, and two in Week 7 in 2013 and 2025. In the current year, Bitcoin's first corrective phase saw the price drop from near $110,000 to under $75,000, a 30% drawdown that aligns with previous halving cycles. Looking ahead, fellow trader Daan Crypto Trades highlights that BTC/USD has yet to deliver consecutive "green" months in August and September. Despite this, a dip could set the stage for a significant cycle top towards the end of the year. Historical patterns suggest that a quick downturn often precedes an explosive fourth quarter rally during bull market years. Daan Crypto Trades notes that any substantial declines in the coming months could be the last major dip before a year-end rally, although a larger high timeframe top could also emerge if the dip does not occur. Data from CoinGlass indicates that BTC/USD has risen 2.1% in August, surpassing the 1.8% average, while September typically sees a 3.8% price drawdown. Readers are reminded that investment decisions carry risks and should be made after conducting thorough research.

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Bitcoin's Price Discovery Uptrend Faces Potential Correction

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