Bitcoin has once again captured the attention of investors, reclaiming a price above $103,000 after briefly dipping below the $98,000 mark just a few days ago. This swift recovery signals the start of what analysts are calling the second phase of Bitcoin’s price discovery, suggesting the possibility of even higher highs in the coming weeks.
On January 28, 2025, Bitcoin reached an intraday high of $103,100 during the early morning hours of the Asian trading session, marking a solid rebound from its low of just under $98,000 earlier in the week. Despite briefly slipping into five-figure territory, the asset found strong support and quickly regained its footing.
According to well-known analyst ‘Rekt Capital,’ Bitcoin has likely completed its first price discovery uptrend and is now ready to embark on its second price discovery phase, which could lead to new all-time highs. The analyst drew parallels with Bitcoin’s past cycles, noting that in both the 2017 and 2021 bull runs, Bitcoin underwent similar corrections before reaching new price peaks.
“We are currently in the fourteenth week of the 2025 cycle, and if history repeats itself, we could see Bitcoin entering its second price discovery uptrend by mid-February,” Rekt Capital said in a statement.
Price discovery refers to the process by which buyers and sellers establish the fair market value of an asset, often resulting in new all-time highs as the asset moves into uncharted territory. The analyst pointed out that this phase of Bitcoin’s current cycle is still in its early stages, with the so-called “parabolic phase” potentially lasting up to 300 days. As of now, Bitcoin is on day 82 of this phase, leaving plenty of room for further gains.
Historically, Bitcoin’s parabolic phase has been a time of explosive growth, often marked by rapid price increases and heightened market activity. According to Rekt Capital, this phase has typically lasted around 300 days on average, meaning that there could still be months of significant price action ahead.
While it is still early in the current cycle, the analyst suggests that Bitcoin could see substantial gains over the next several weeks, particularly if the second price discovery phase unfolds as expected. This phase, if it mirrors past cycles, could lead to a fresh wave of price surges, with Bitcoin potentially setting new all-time highs in the process.
Meanwhile, the crypto community is once again grappling with controversial comments from American TV personality Jim Cramer, who spoke about Bitcoin on CNBC’s Mad Money on Monday. Cramer, known for his unpredictable views on Bitcoin, told viewers that they should own Bitcoin, calling it “a great thing to have in your portfolio.”
However, many in the crypto space remain skeptical of Cramer’s remarks, given his history of making erratic predictions. In the past, Cramer’s comments have often been followed by market downturns, leading some to believe that his endorsement could signal an impending correction. Despite this, Bitcoin’s recent rebound seems to suggest that the market is not overly concerned with his opinions at the moment.
While Bitcoin is enjoying a strong recovery, the broader cryptocurrency market remains in a state of flux. The total market capitalization of all cryptocurrencies is down slightly to $3.65 trillion, despite Bitcoin’s rebound. This indicates that altcoins are still struggling, with many seeing losses for the month.
Ethereum, the second-largest cryptocurrency by market cap, experienced a significant dip, falling to $3,036 before bouncing back to reclaim the $3,200 level. However, Ethereum has still lost more than 6% of its value this month, reflecting ongoing weakness in the altcoin sector.
Other altcoins also faced challenges, though there are signs of recovery. XRP managed to regain the $3 mark, and Solana’s price is approaching $240 after a brief dip. While Bitcoin’s price surge is encouraging, it remains to be seen whether this momentum will carry over to altcoins in the near future.
As Bitcoin embarks on its second price discovery phase, many in the crypto space are closely watching the asset’s movements. If history repeats itself, Bitcoin could see substantial gains over the next few weeks, potentially reaching new all-time highs by mid-February. However, as always, market volatility remains a key factor, and investors should be prepared for potential fluctuations.
For now, Bitcoin’s rebound is a positive sign for the cryptocurrency market, and the second phase of price discovery could bring more exciting developments in the coming months. As the broader market remains volatile, investors are advised to stay focused on long-term strategies and keep an eye on both Bitcoin’s performance and the broader trends in the altcoin market.
Get the latest Crypto & Blockchain News in your inbox.