Bitcoin (BTC) succumbed to heightened global economic uncertainty as it tumbled to $85,418 earlier today, wiping out more than $150 billion from its total market capitalization in the last 48 hours. The sharp decline has left investors on edge, but seasoned crypto analyst Rekt Capital suggests that this could be yet another false downside deviation before BTC resumes its bullish momentum.
Another False Breakout In Bitcoin?
In an X post published today, seasoned crypto analyst Rekt Capital shared their thoughts on the current BTC price action. The analyst highlighted that, historically, BTC has displayed downside deviations or false breakdowns below every re-accumulation range during the current market cycle.
However, such price action is not extraordinary. In fact, it may present a decent buying opportunity for investors to accumulate some discounted Bitcoin before regaining bullish momentum.
Rekt Capital emphasized two potential scenarios for BTC following the current downside deviation. First, if the deviation ends up as a downside wick, then the BTC price could surge to $93,500 by the end of the week.
However, if the pattern mirrors the post-halving downside deviation, where the weekly candle closed below the re-accumulation range, BTC may take two to three weeks to reclaim the $93,500 level. The analyst noted that regardless of which scenario unfolds, BTC is likely to revisit the $93,500 level in the near future. The analyst added:
Each of these scenarios points to a revisit of $93500 at some point, with the revisit occurring as early as the end of this week or over the next 2-3 weeks.
Daan Crypto Trades, another prominent crypto trader, echoed Rekt Capital’s analysis. Sharing a daily BTC chart, Daan pointed out that two previous false breakdowns in 2024 were followed by sharp trend reversals, ultimately pushing BTC to new all-time highs in the following months. true.
Meanwhile, Merlijn The Trader also sees the current BTC dip as a buying opportunity. The analyst remarked that the past five major BTC corrections have averaged around 23.8%, whereas the current drop sits at approximately 21%. This suggests that the market downturn may be nearing its end, provided BTC follows its previous correction patterns.
Is BTC Preparing For Its Next Leg Up?
While the recent sell-off may have dampened bullish sentiment, long-term projections for BTC remain overwhelmingly optimistic. ARK Invest recently reaffirmed its bold prediction that Bitcoin could reach $1.5 million by 2030, driven by increasing adoption and its status as a global store of value.
Further, BTC is likely to benefit from a weakening US dollar and rising global adoption as a reliable store of value. At press time, BTC trades at $86,979, down 0.8% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X and TradingView.com
