A well-known cryptocurrency trader is analyzing the recent 9% drop in Bitcoin (BTC) and providing insights to his large following on the social media platform X. Rekt Capital, a pseudonymous crypto analyst, warns that BTC’s current phase of re-accumulation may deceive some traders into believing that Bitcoin is experiencing a breakdown. He explains that during this cycle, downside wicks below the range lows often occur to trick investors before the price resumes an upward trend.
Bitcoin is rapidly approaching the halving, an event that occurs every four years and results in a reduction of BTC mining rewards. Indicators suggest that the halving will take place sometime in the next week. According to Rekt Capital, this means that the peak of the next bullish cycle is still approximately a year and a half away, likely occurring in mid-September or mid-October 2025.
Despite the current pullback stage of accumulation, the analyst highlights that Bitcoin has rebounded from worse situations in the past. The current pullback has reached a depth of -18% over a period of 10 days, which is close to the levels observed in previous cycles. However, in terms of time, this pullback is relatively short compared to previous retracements, which have lasted 2-3 weeks or even up to two months.
At the time of writing, BTC is valued at $63,693, representing a 6% increase in the past 24 hours. Moving away from Bitcoin, Rekt Capital suggests that altcoins are currently in a downward trend until at least late May, possibly extending into early June. He explains that the hype cycle for altcoins in the first quarter of the year has ended, and investors should now exercise patience and wait for the second quarter hype cycle to begin. This could mean that altcoins will hit their bottom prices as early as mid-May, but more realistically by the end of May or early June.
In conclusion, while Bitcoin has experienced a recent drop, Rekt Capital believes that it is still in a phase of re-accumulation and that the next bullish cycle peak is still a year and a half away. Altcoins, on the other hand, are currently in a downward trend but are expected to bottom out in the coming weeks. Investors should exercise caution and conduct thorough research before making any high-risk investments in cryptocurrencies or digital assets.
