Bitcoin at a Critical Turning Point: Rekt Capital Outlines Two Possible Scenarios
Bitcoin has once again been rejected from a major long-term resistance level, falling 29 percent after failing to break above it for the third consecutive time. According to market analyst Rekt Capital, this rejection is the most dramatic of the current cycle and exceeds all prior corrections.A Strengthening Resistance Line
The resistance in question is a multi-year trendline connecting previous cycle highs. Each time Bitcoin rallies into this area, sellers step in aggressively, preventing any sustained breakout. The first rejection from this trendline produced a 29 percent decline, the second a 13 percent pullback, and the latest reaction has returned to roughly the same 29 percent drawdown level.Rekt Capital notes that seller conviction is increasing, not weakening. As he describes it, many market participants may be thinking they missed earlier opportunities to sell, but any revisit to that trendline becomes a trigger point for renewed profit-taking.
Market Liquidations Amplify Downward Pressure
The recent move down was intensified by broad liquidations across leveraged positions. As long positions were forced to close, the downward momentum accelerated, adding pressure to an already fragile structure. Instead of showing signs of exhaustion, the resistance line continues to harden with each retest.Scenario One: A Deeper Macro Correction
In the first scenario outlined by Rekt Capital, Bitcoin could enter a deeper corrective phase as repeated rejections indicate an inability to build sufficient bullish momentum. This could involve a move toward lower support zones where long-term buyers traditionally accumulate. A deeper correction would mirror previous cycle structures where Bitcoin rebalanced before attempting a true breakout.Scenario Two: Consolidation Before a Breakout Attempt
The second scenario involves prolonged consolidation below resistance. If Bitcoin can stabilize after the liquidation-driven drop, it may reclaim key levels, form a higher low structure, and rebuild momentum. This setup has occurred in earlier cycles, where consolidation led to a decisive breakout after market participants became desensitized to the resistance line.A Cycle-Defining Moment
With Bitcoin facing its third major rejection at the same long-term trendline, the market appears to be at a cycle-defining crossroads. Whether the coming weeks bring deeper downside or a consolidation phase, the next breakout attempt will likely shape the trajectory of the remainder of this cycle.Editorial Team — CoinBotLab