A widely followed crypto analyst says there is a good chance Bitcoin (BTC) will change course after the latest pullback.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 529,900 followers on the social media platform
“Bitcoin started its current -15% pullback in week seven of the price discovery. The timing of this setback is in line with historical trends. It is the first course correction of this cycle. As a result, the likelihood of reversal is high.”
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 further remark that this type of pattern is an established part of the main crypto assets according to the historical cycle of market capitalization.
“In the 2013 cycle, it took six weeks of upside in Price Discovery before BTC experienced its first major correction in week seven. In the 2017 cycle, it took seven weeks of upward price movement before the first major pullback of -34% occurred.
In week eight In the 2020/2021 cycle, BTC recovered six weeks after Price Discovery, before BTC made its first meaningful pullback of -16%. And in this cycle, Bitcoin enjoyed a surge until week seven before regaining -15%. Extraordinary? History says no.”
The trader then says that BTC has done that bounced back nicely out of the low support range and will occupy the $91,000 to $101,000 price range “until further notice.”
BTC is at $93,803 at the time of writing, down 1% over the past 24 hours.
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