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Rekt Capital, a well-known crypto strategist, has issued a warning about a potential further correction for Bitcoin BTC/USD , suggesting a possible drop to $55,000.
What Happened: The analyst, who has previously accurately predicted Bitcoins pre-halving pullback, recently stated that the cryptocurrency could correct to much lower levels.
In a YouTube video over the weekend, Rekt Capital speculated, What if we were going see a deepest correction in the cycle, or at least equal to the deepest correction in the cycle of 23.8%? That would see us go to $55,000.
However, he also suggested that a deeper drawdown is unlikely at this point in the cycle, and that Bitcoin has either already hit a local bottom or is experiencing a more shallow pullback.
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"Is that a possibility that we see the deepest correction not too long after already seeing the deepest correction this cycle just after the halving? That was around late April, early May. We saw a record-breaking deep correction in this cycle. We eclipsed the early 2023 pullback, and it took a year and a half for that new record to come in, the analyst said.
So to now talk about another record and another deep retrace occurring only a month-and-a-half later, I think that's a little bit too farfetched. I don't think we're going to eclipse that retrace depth for the deepest retrace in this cycle. I think it would be either this being the bottom already or a slight additional pullback, he added.
At the time of writing, Bitcoin was trading for $61,376.35, down by almost 5% in the last seven days. .
Why It Matters: This prediction comes in contrast to the recent forecast by former Goldman Sachs executive Raoul Pal. Pal anticipated a significant surge in Bitcoin and the overall crypto market in the fourth quarter of the presidential election year.
He stated that risk assets like Bitcoin typically experience rallies during Q4 of an election year, referring to this period as the banana zone. These contrasting views highlight the volatility and unpredictability of the cryptocurrency market.
Now Read: Analyst Predicts Bitcoin To Reach Groundbreaking $100,000 Milestone
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