[Analysis] Bitcoin’s 47% Rebound Doesn’t Confirm Bottom Yet as Past Cycles Often Retested Lows

Forecast Trend Report by Period

Bitcoin (BTC) has rebounded about 47% from its July low, but past market cycles suggest that may still be insufficient to confirm a bear-market bottom.

According to Binance Research’s weekly report published on October 6, Bitcoin fell to $57,800 on July 1 and then rebounded about 46.9% to $84,880 on October 1. Still, Binance Research found that four of five rebounds following corrections of a similar scale in past cycles were followed by another test of the low.

Bitcoin is currently down as much as 54.2% from its peak of $126,200 reached in October last year. That headline decline is smaller than the maximum drawdowns of 77.6% to 86.9% recorded in the previous three bear markets.