Renowned crypto analyst, Rekt Capital, is cautioning traders that Bitcoin (BTC) is likely to experience a further decline before resuming its upward trend.

Addressing his 476,200 followers on the social media platform X, the pseudonymous trader highlights that BTC’s technical analysis indicates that the cryptocurrency has already hit its local peak.

“It is evident that Bitcoin’s recent upward movements have led to a local topping structure (blue box) as observed in recent months, with a new Lower High emerging (black).”

Analyzing BTC’s recent movements, Rekt Capital notes that the current pattern is reminiscent of a local topping structure from earlier this year, particularly between mid-March and mid-April.

Drawing on historical data, the analyst points out that Bitcoin typically struggles to break out immediately after halvings, which occur approximately every four years and cut miners’ rewards in half.

“Based on historical trends, Bitcoin has historically failed to break out early in the Post-Halving period, as expected.”

Looking ahead, the pseudonymous analyst predicts that Bitcoin is poised for significant gains in the future.

“While the current pullback in BTC may seem discouraging, the upcoming months have the potential to be life-changing.”

Last week, Rekt Capital had suggested that BTC was on the verge of a “historic breakout.”

As of the time of writing, BTC is valued at $66,600, representing a 5% decrease in the last 24 hours.

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