Bitcoin Correction: Chart Warns of Potential Drawdown Before Next Rally

The recent Bitcoin price action has been characterized by a steady climb, with the cryptocurrency gaining around 7.66% over the past month and breaking above the $70,000 level. However, a widely shared chart suggests that this cycle may still face a significant correction before the next major rally begins.

The chart, published by Crypto Patel, compares previous market tops and corrections to predict a possible drawdown in Bitcoin's current cycle. According to the analysis, a similar correction of around 77% from the recent peak near $126,272 could place a theoretical worst-case bottom near $32,000.

However, Crypto Patel notes that the maximum pain zone likely sits closer to the $40,000 to $50,000 region instead of the $32,000 level. The long-term trendline in the chart still points towards higher prices, suggesting that the correction is part of the cycle rather than the end of it.