What is the worst case scenario for Bitcoin right now? Analysts explain

In the latest video released on December 21, cryptocurrency analyst Rekt Capital tried to answer the question ‘What is the worst-case scenario for Bitcoin right now?’ After reaching an all-time high of $108,374 on December 17, the price of BTC has dropped more than -11%. How low can the price of Bitcoin go? Rekt Capital provides a historical perspective on Bitcoin price pullbacks, emphasizing the historical significance of the 6th, 7th, and 8th weeks in the “price discovery uptrend”. Based on previous cycles like 2013, 2016-2017, and 2021, he explains that Bitcoin tends to experience significant corrections during these specific time periods, with some drops of up to 34% or even higher. “Understanding these weeks is crucial as they tend to pose problems for Bitcoin,” Rekt Capital declared, referencing previous cycles when significant downturns occurred during this timeframe. For instance, in the 7th week of the 2013 cycle, Bitcoin underwent a steep 75% decline over 13 weeks. Similarly, the 2016-2017 period saw a 34% drop in the 8th week, highlighting the vulnerability during these specific weeks. As of the current cycle, Bitcoin has experienced a 10%+ pullback, bringing its price to a significant historical support level at $96,537 on the weekly chart. Rekt Capital emphasizes the importance of this support level, noting that ‘This historical support area has enabled moves to $108,000.’ He warns that failing to maintain this support level could lead to a more severe correction down to $89,830. Please provide the text to be translated. Considering price action over the past few days, Rekt Capital pointed out the presence of a bearish engulfing candle on the weekly timeframe—a technical signal often associated with the potential for a reversal. He noted, “We are losing the levels of resistance that have turned into support levels.” This loss signals the possibility of transitioning to a corrective phase as prices struggle to maintain an upward trajectory. Rekt Capital also emphasizes the importance of maintaining the 5-week technical trend in his analysis. “If we lose this 5-week technical uptrend and the orange trendline, it will increasingly evidence that we may be transitioning into a corrective phase,” he warned.

Furthermore, he has addressed the CME gap between the $78,000 and $80,000 price levels, an important area that is still unfilled. Rekt Capital notes that “Going deep into the 26%, 27%, 28% drop levels could fill the entire CME gap”. According to tradition, CME gaps tend to be filled while some gaps have never been filled. Despite all the warning signals, Rekt Capital still maintains a bullish stance in the long term. “These pullbacks are what set the stage for future upward trends in the parabolic phase of the cycle,” he explained. Drawing from previous cycles, he illustrated how corrections in tradition have provided the necessary “resting time” for the market. For example, in the 2021 cycle, Bitcoin experienced a 16% decline in week 6 and an 8% decline in week 8, but the overall trend continues to rise. Similarly, the current 10% retreat, although significant, may play a role in preparing for the next stage of the price discovery process. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)