As Bitcoin enters its seventh consecutive week of gains, market analysts warn of an impending correction phase. The cryptocurrency's current price trajectory mirrors historical patterns observed after previous halving events, with technical indicators suggesting a potential pullback may be overdue.
Market researcher Rekt Capital's analysis reveals Bitcoin typically experiences its second "price discovery correction" between weeks 5-7 of an uptrend. With BTC currently trading below $120,000 after touching $124,500 earlier this month, the market appears poised for a potential reversal.
——Historical data shows 30% drawdowns are common during these phases——
Despite short-term bearish signals, the broader outlook remains positive. Analysts note that previous cycles have seen price rebounds following similar corrections, often culminating in year-end rallies. 【August 2025】 has already delivered modest gains of 2.1%, slightly above the historical average.
Several factors suggest potential volatility ahead: • Ether unstaking queues reaching $3.8B • September historically being a negative month for BTC • Growing derivatives market activity
Traders anticipate any significant price drops in the coming weeks could set the stage for a strong Q4 performance. The current technical setup resembles 2021's cycle, where a mid-year correction preceded substantial gains.
While short-term fluctuations may occur, the fundamental Bitcoin narrative remains unchanged. The cryptocurrency continues demonstrating its characteristic volatility within an established upward trend, with many analysts maintaining six-figure price targets for the current market cycle.