The cryptocurrency market is currently in a highly dynamic phase. After reaching a new all-time high (ATH) of $126,000 in October 2025, Bitcoin ( )( experienced a significant correction down to the $61,000 area in early 2026.$BTC This decline is a classic phenomenon in Bitcoin cycles often referred to as "capitulation" or market cleansing from excessive euphoria. Below is an in-depth data analysis and review of Bitcoin's decline compared to previous cycles. ) 1. Comparison of ATH and Drawdown
Historically, every time Bitcoin hits a new record, it is followed by a sharp decline. However, there is an interesting trend: the maximum percentage decline Maximum Drawdown( tends to decrease as the asset matures.
Note: Although the current decline $170 ~50%( appears alarming, historically, this is still considered "shallow" compared to the 2013 or 2017 cycles. ) 2. Technical Analysis: Why the Drastic Drop? The drop from $126,000 was triggered by a combination of technical and macroeconomic factors.
••Overbought on RSI: When reaching ATH, the Relative Strength Index (RSI) on the weekly timeframe was in the extreme upper zone, indicating the market was overbought.
••Mass Liquidation: Many traders used high leverage above $100,000. When the price corrected slightly, a domino effect of liquidations accelerated the price decline.
••Critical Support Zones: Currently, BTC is testing the 200-week Moving Average and psychological zones in the $58,000 - $62,000 range. If this area breaks, the next technical target is around $45,000 - $50,000.
3. Recovery Timeframe Based on Historical Data( Bitcoin does not recover overnight. Based on data from the previous three major cycles, there is a fairly consistent waiting period for BTC to return to its peak price.
••Cycle from 2013 to 2017: It took about 1,180 days )around 3 years( to surpass the ATH of $1,150.
••Cycle from 2017 to 2021: It took about 1,095 days )3 years( to return to the $20,000 level.
••Cycle from 2021 to 2024: It took approximately 800-900 days to surpass $69,000 again.
👍Current Recovery Prediction: On average, Bitcoin needs 12 to 18 months to exit a full bear market phase and start forming a new bullish structure.
Considering the larger institutional )ETF( adoption today, the recovery process is predicted to be faster, but investors are still advised to have a horizon until the end of 2026 to see the potential for new ATHs. 👍Conclusion A 50% decline from the peak is "normal" for Bitcoin. Historically, this is an accumulation phase for long-term holders before entering the next halving cycle or a surge in global adoption.
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#BitcoinMarketAnalysis
The cryptocurrency market is currently in a highly dynamic phase. After reaching a new all-time high (ATH) of $126,000 in October 2025, Bitcoin ( )( experienced a significant correction down to the $61,000 area in early 2026.$BTC This decline is a classic phenomenon in Bitcoin cycles often referred to as "capitulation" or market cleansing from excessive euphoria. Below is an in-depth data analysis and review of Bitcoin's decline compared to previous cycles. ) 1. Comparison of ATH and Drawdown
Historically, every time Bitcoin hits a new record, it is followed by a sharp decline. However, there is an interesting trend: the maximum percentage decline Maximum Drawdown( tends to decrease as the asset matures.
Cycle = ATH Peak ~ Lowest Price )Bottom( ~ % Decline.
2013 = $1,150 ~ )-85%
2017 = $19,800 ~ $3,200 -84%
2021 = $69,000 ~ $15,500 -77%
2025 = $126,000 $61,000 (not yet stable) ~50%
Note: Although the current decline $170 ~50%( appears alarming, historically, this is still considered "shallow" compared to the 2013 or 2017 cycles. ) 2. Technical Analysis: Why the Drastic Drop?
The drop from $126,000 was triggered by a combination of technical and macroeconomic factors.
••Overbought on RSI: When reaching ATH, the Relative Strength Index (RSI) on the weekly timeframe was in the extreme upper zone, indicating the market was overbought.
••Mass Liquidation: Many traders used high leverage above $100,000. When the price corrected slightly, a domino effect of liquidations accelerated the price decline.
••Critical Support Zones: Currently, BTC is testing the 200-week Moving Average and psychological zones in the $58,000 - $62,000 range. If this area breaks, the next technical target is around $45,000 - $50,000.
3. Recovery Timeframe Based on Historical Data(
Bitcoin does not recover overnight. Based on data from the previous three major cycles, there is a fairly consistent waiting period for BTC to return to its peak price.
••Cycle from 2013 to 2017: It took about 1,180 days )around 3 years( to surpass the ATH of $1,150.
••Cycle from 2017 to 2021: It took about 1,095 days )3 years( to return to the $20,000 level.
••Cycle from 2021 to 2024: It took approximately 800-900 days to surpass $69,000 again.
👍Current Recovery Prediction:
On average, Bitcoin needs 12 to 18 months to exit a full bear market phase and start forming a new bullish structure.
Considering the larger institutional )ETF( adoption today, the recovery process is predicted to be faster, but investors are still advised to have a horizon until the end of 2026 to see the potential for new ATHs. 👍Conclusion
A 50% decline from the peak is "normal" for Bitcoin. Historically, this is an accumulation phase for long-term holders before entering the next halving cycle or a surge in global adoption.