As Bitcoin (BTC) hovers near its lowest levels since late 2024, a market observer suggests the flagship crypto may not have finished bottoming yet, with more downside potentially ahead.

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BTC’s Historical Data Points To Longer Correction

On Wednesday, analyst Rekt Capital compared Bitcoin’s current price action to its performance in previous cycles to determine how close the leading crypto’s market bottom may be.

In a video analysis on X, the market watcher explained that BTC’s deviations from previous all-time highs (ATHs) could serve as key reference points for this assessment. Notably, Bitcoin bottomed 22% from the 2017 peak during the last cycle’s correction. Now, it is trading roughly 14% below the 2021 peak of $69,000, which could suggest the bottom may be approaching.

However, the analyst affirmed that this metric alone “doesn’t represent the mosaic of data that we need to be paying attention to.” He stated that the length of previous bear markets is a crucial indicator to factor in, noting that, historically, Bitcoin bear markets tend to last at least one year, sometimes extending beyond that.

For instance, the flagship crypto took approximately 365 days to complete its full corrective phase during the 2021-2022 bear market. The current pullback has lasted about 240 days so far, which would depart from historical behavior and make it significantly shorter than previous cycles if the bottom is already in or close.

If the current cycle follows a similar timeline to previous ones, BTC could have at least 120 days left in its corrective phase, with the bottom likely occurring around October and the possibility of further extension if the cycle mirrors longer historical patterns.

Bitcoin Bottom Another 20% Below?

The analyst highlighted that while the duration of the bear market is important, the depth of its retracement is another crucial factor. Last cycle, Bitcoin dropped 77%, while it declined 84% during its 2018 bear market.

Nonetheless, the pullback has only reached 53% so far this cycle, suggesting there may still be room for additional downside. Based on this, he emphasized the trend of shallower bear markets, with the correction’s depth progressively diminishing roughly 7%-10% each cycle.

If this pattern repeats, Bitcoin could see a potential retracement near 70% this cycle, placing BTC’s bottom in the high $30,000 range. Meanwhile, if the shallowing trend accelerates toward a 10% reduction, the bottom could form near the low $40,000 region.

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These factors point to a critical period over the next four to five months, the analyst affirmed, in which another leg down of up to 20% remains possible. He noted that similar phases have historically included periods of consolidation followed by additional declines before the final bottom forms.

Ultimately, Rekt Capital asserted that this period is crucial as it lays the foundation for the next bull cycle. “This bear market here (…) precedes an entire period of multi-year upside. And I think that’s why it’s important, as a result, to focus on the importance of this bear market bottoming out period over these next few months because we’ll then see a multi-year period of upside,” he concluded.

Featured Image from Unsplash.com, Chart from TradingView.com

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Hedge fund veteran Dan Ives believes one Mag 7 tech stock is undervalued and will soon print massive gains.

In a new CNBC interview, Ives says that Microsoft (MSFT) could surge by more than 30% from its current value as he expects artificial intelligence (AI) to start generating revenue for the company after large-scale investments in the technology.

“[Microsoft’s] defending their turf. They’re going after developers, and that’s really front and center in this arms race that we’re seeing play out, and I think these are the important steps, not just on Copilot and build, but what ultimately will be Azure, and that’s why I think right now the market is mispricing Microsoft to what I believe is still going to be the monetization phase that’s going to happen in the next six to 12 months.”

Ives believes Microsoft will hit $575, a more than 34% increase from its $427 price per share at time of writing.

Ives also says that AI technology still remains in its early stages and will be transformative for civilization in the coming years.

“It’s my view we’re still in the third inning of AI revolution relative to where this nine inning game is going. We could definitely have ebbs and flows in this market, but when you look where Alphabet’s positioned, they’re front and center, they’re top of the mountain right now. Amazon clearly has narrowed the gap. Microsoft obviously is doing a lot of great things in terms of Azure…

We’re talking about years, we’re talking about fourth industrial revolution in terms of what they’re going after.”

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A memecoin trader turned a $2,480 bet into more than $12 million, creating one of the sector’s rare breakout winners at a time when the broader memecoin market is collapsing.

On-chain analyst Ember CN reported June 1 that the trader bought Binance Life, also known as BianRensheng, within half an hour of its deployment and launch in October. The wallet used 2.14 BNB, worth about $2,480 at the time, to acquire 18.5 million Binance Life tokens at an average price of roughly $0.00013.

The position has since grown into an eight-figure windfall after Binance Life surged 40% on June 1. The trader moved 3.5 million tokens, worth about $2.38 million, to Binance, signaling the start of profit-taking after months of holding through one of crypto’s most volatile trading segments.

Even after the transfer, the wallet still holds about 15 million Binance Life tokens on-chain, valued at roughly $10 million. That puts the total position near $12.38 million and yields a return of about 5,000 times the initial purchase.

The gain stands out because the trader did more than buy early. Early memecoin buyers often sell after the first large move, especially when a token has thin liquidity and no fundamental valuation anchor.

In this case, the wallet held the position for months before taking partial profits, allowing a small speculative entry to become one of the latest lottery-style wins in crypto.

Binance Life rides a Chinese-language meme wave

Binance Life is part of a growing group of Chinese-language memecoins built around internet culture, humor, and viral community narratives.

Unlike most crypto assets that claim to be tied to infrastructure, payments, governance, or financial applications, memecoins usually trade on attention. Their value depends on social momentum, liquidity, and the belief that new buyers will continue to enter the market.

That structure has helped turn tokens such as Dogecoin, Shiba Inu, Pepe, and Bonk into major speculative assets during past market cycles.

More recently, Chinese-speaking communities have begun to produce their own versions of that trade, using characters, slang, jokes, and regional internet references to build market identity.

BNB Chain has also been drawn deeper into the memecoin cycle. Last year, Binance launched Meme Rush to support meme projects on BNB Chain, giving new tokens a more visible route into the market.

Former Binance CEO Changpeng Zhao also helped fuel a separate wave of speculation last year after revealing the name of his adopted dog, Broccoli, which triggered a rush of Broccoli-themed tokens.

Binance Life’s rally shows that isolated memecoin winners can still emerge when the right mix of timing, culture, and liquidity arrives.

The broader memecoin trade is breaking down

However, the broader sector is no longer moving with the same force that defined the last cycle.

Data from CryptoSlate shows that the total memecoin market capitalization has slipped to about $32 billion, with nearly every major subsector posting year-to-date losses.

The Meme Season Index, which tracks how many leading meme tokens are outperforming Bitcoin, is currently at 10, indicating that most major memecoins are underperforming the world’s largest digital asset.

That marks a sharp reversal from 2024, when Pump.fun and similar launch platforms triggered an explosion of Solana-based memecoins, pushing tokens such as BONK and PEPE to new highs.

Renewed interest in these coins, along with political speculation around Donald Trump’s reelection, helped lift the total memecoin market capitalization to a record $150.6 billion in December 2024.

However, the market began turning after the controversial launches of TRUMP and LIBRA in January 2025, which intensified concerns about insider timing, crowded speculation, and retail losses. By November, the sector had fallen to $47.2 billion. It has since declined further.

That makes the Binance Life trade both remarkable and misleading. One wallet turned a few thousand dollars into millions, but the broader memecoin market has lost most of the momentum that made such trades feel common during the peak.

Still, it shows the market remains capable of producing extreme winners, but those wins are now happening against a weaker backdrop where most tokens are falling, liquidity is thinner, and traders are becoming more selective.

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