Bitcoin (BTC) closed the week above $100,000 for the first time ever, ending the cryptocurrency’s massive week with another milestone. However, a market observer warned investors that historical patterns could soon lead the flagship cryptocurrency to a major correction.

Bitcoin’s first weekly close above $100,000

Bitcoin reached the $100,000 milestone almost a week ago, breaking the psychological barrier for the first time. Following its massive feat, the largest cryptocurrency by market capitalization faced its biggest pullback since Trump won the US presidential election.

BTC briefly fell about 13% to the $90,000 level on a candle that resembled its performance when it first broke the $10,000 barrier. Since then, the cryptocurrency has been oscillating between the $97,000 and $101,000 Prince range, facing some resistance to break through the upper end of the range.

As reported by NewsBTC, cryptocurrency analyst Jelle noted that BTC could follow the same path as the $10,000 milestone trajectory, turning the newly breached level into support after three days, as it did in November 2017.

After four days of swinging between a recent range, Bitcoin registered its first daily close above $100,000 on Sunday. This result also marked the first weekly close above this barrier, showing similar weekly performance to the $10,000 candle.

Rekt Capital cryptocurrency analyst highlighted that BTC’s daily close above this level and Monday’s 2.5% pullback constitutes a “technically retest” of this level. However, the ongoing retest is highly volatile while trying to turn the “final major daily resistance” around the $98,000 zone into support for the past two days.

The analyst added: “A volatile retest like this makes sense, especially on a weekly basis.” He explained that the $98,000 level was broken as resistance on the weekly chart after yesterday’s close, which means “this week is all about trying to reclaim that level in the form of new support.”

Will the next few weeks be “problematic” for BTC?

Despite breaking a key barrier, Rekt Capital warned investors of the upcoming BTC week, in which a “parabolic growth phase” will occur after the halving. The analyst previously explained that after each Halving, Bitcoin enters a parabolic period, which lasts approximately 300 days in each cycle.

Historically, BTC price sees its first major pullback a month after entering price discovery mode. According to the analyst, the first “price discovery correction” historically begins between weeks 6 and 8 of each parabolic phase and involves at least 25% of retracements.

Rekt Capital pointed out that today begins the sixth week of the post-halving growth phase, emphasizing that BTC is a time frame in which its price has retreated significantly. Based on this, the price of Bitcoin could drop by 25% to 40% in the next few weeks, similar to what it did in 2017.

The analyst warned investors that the current retest of the $98,000 level is crucial because failure to hold it could trigger the first major correction:

As a result, over the next 3 weeks I will be increasingly cautious about retesting attempts, and given BTC’s history at this point in the cycle, I would not be surprised if key levels are invalidated.

Nevertheless, he stated that “the second price discovery uptrend will follow the price discovery correction,” which could push BTC to a recent ATH.

At the time of writing, Bitcoin is trading at $98,073, down 2% in the last 24 hours.

Featured image from Unsplash.com, chart from TradingView.com