A well-known crypto trader is analyzing the recent 9% drop in Bitcoin’s value over the past week. Rekt Capital, an anonymous crypto analyst, explains to his 452,800 followers on the social media platform X that the current re-accumulation phase of BTC may deceive some traders into thinking it’s a breakdown.

Rekt Capital emphasizes that throughout this cycle, one important thing to note about Bitcoin’s re-accumulation ranges is that downside wicks below the range lows are often used to trick investors into believing there’s a fake breakdown before the uptrend continues.

Bitcoin is rapidly approaching the halving, an event that occurs every four years and slashes BTC mining rewards in half. Indicators suggest that the halving will happen sometime in the next week. According to Rekt Capital, this means that the peak of the next bull cycle is still about a year and a half away.

Based on historical data, Rekt Capital predicts that the next bull market peak will occur 518-546 days after the halving, which would be around mid-September or mid-October 2025.

Although BTC is currently in a pullback stage of accumulation, the analyst points out that the cryptocurrency has recovered from worse situations in the past. The current pullback has reached a depth of -18% and has lasted for 10 days. While this is close to the territory where bargain-buying occurs based on pullbacks in this cycle (up to -23% deep at most), it is still one of the shortest retracements in this cycle. Previous pullbacks have lasted 2-3 weeks or even up to two months.

At the time of writing, BTC is valued at $63,693, showing a 6% increase in the last 24 hours.

Shifting focus from BTC, Rekt Capital mentions that altcoins are currently experiencing a downward trend that will likely continue until late May, possibly early June. The analyst advises patience and suggests that the next altcoin hype cycle will begin in the second quarter of this year, with altcoins hitting their bottom as early as mid-May, but more realistically by the end of May or early June.

To stay updated, users can subscribe to receive email alerts directly to their inbox or check the price action. The analyst also recommends following The Daily Hodl on Twitter, Facebook, and Telegram for more information.

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