The crypto market has experienced a notable correction since reaching its peak of $2.72 trillion in March, sparking widespread debate about whether this downturn signals the end of the current bull run—or merely a pause before another surge. In an insightful discussion with industry expert Mark Wong, Head of Trading at HashKey Capital, we uncover key patterns, historical comparisons, and forward-looking indicators that help clarify where the market may be headed.
Understanding the Current Market Cycle
Despite the ongoing correction, Mark Wong remains fundamentally bullish on the long-term outlook for cryptocurrencies. He anticipates the market will eventually reach new all-time highs—potentially within the next one to two years. However, he emphasizes that timing the market with precision is extremely difficult, and therefore avoids making specific predictions about when these milestones might occur.
Instead, Wong focuses on key technical levels and macro drivers that could influence future price movements:
“A number of players are watching the market closely. When Bitcoin breaks into six digits, it will trigger significant FOMO (fear of missing out). For Ethereum, breaking its all-time high is the critical threshold. The introduction of spot ETFs may act as a catalyst, potentially establishing a structural price floor due to increased institutional demand.”
Wong also highlights how external shocks—such as a depegging event involving a major stablecoin like USDC—could unexpectedly benefit Bitcoin and Ethereum. In times of stablecoin instability, investors often seek refuge in the most liquid and trusted digital assets, which can drive capital inflows into BTC and ETH.
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Additionally, macroeconomic conditions such as rising interest rates or tightening liquidity might paradoxically support crypto prices by fueling inflation concerns and reducing confidence in traditional financial instruments.
The Role of Memecoins in Market Expansion
While memecoins like Dogecoin and Shiba Inu often draw criticism for their speculative nature, Wong views them as a double-edged sword with potential upside. Although they may divert capital from more established altcoins, they also attract new participants who might not otherwise engage with the crypto ecosystem.
“People turn to memecoins because they believe Bitcoin or Ethereum can no longer deliver 100x returns. But even if there’s some dilution, memecoins bring attention and fresh money into the space—especially through celebrity endorsements and viral trends. That exposure can eventually funnel users toward more substantive projects.”
He also identifies DePin (Decentralized Physical Infrastructure Networks) as a likely dominant narrative in the next phase of the cycle. Projects that integrate blockchain with real-world infrastructure—such as decentralized wireless networks or storage solutions—are gaining traction as both investors and developers look for tangible use cases beyond finance.
Comparing the 2025 Correction to Past Market Downturns
As of mid-2025, the crypto market cap has been in correction for 112 days, marking a maximum drawdown of 25% and currently sitting at a 20% decline from its peak. This duration surpasses any single correction seen during the 2020–2021 bull market, where five separate drops exceeding 20% each lasted less than three weeks.
However, when viewed in broader context, today’s correction bears resemblance to a pivotal moment in 2021. That year, a 56% decline occurred over 42 days, beginning approximately 427 days after the prior bull run commenced. Today’s pullback started around 476 days into the current cycle—suggesting we may be at a structurally similar inflection point.
Technical Parallels Between Cycles
Technical indicators further reinforce this comparison:
- In 2021, the weekly RSI showed a clear bearish divergence in overbought territory, followed by a bearish MACD crossover.
- In 2025, while no classic RSI divergence formed, a lower high within overbought conditions emerged—still signaling weakening momentum.
- The weekly MACD once again generated a bearish cross, mirroring the earlier signal.
These similarities suggest the current correction may serve as a mid-cycle consolidation rather than a terminal top—paving the way for one final upward leg before a prolonged bear market begins.
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Is a New All-Time High Still Possible?
A deeper dive into Elliott Wave theory offers additional clarity. Since the rally began in November 2022, the market appears to be in Wave 4 of a five-wave bullish impulse, with Wave 3 having extended significantly—a common pattern in strong bull markets.
Wave 4 corrections typically take two primary forms:
- A-B-C Zigzag within a descending parallel channel: Under this scenario, the market would see further downside toward $1.95 trillion—the lower boundary of the channel—before resuming its upward trajectory.
- Symmetrical triangle consolidation: If this pattern holds, the low may have already formed. A breakout above resistance would confirm continuation of the larger uptrend.
The decisive factor will be price action relative to the May 1 low at $2.04 trillion. A sustained drop below this level supports the A-B-C model; holding above it increases confidence in the triangle formation.
Either way, both interpretations anticipate another significant rally before the cycle concludes.
Why the Bull Run Isn’t Over Yet
Despite nearly four months of sideways-to-downward movement, multiple lines of evidence suggest the bull market remains intact:
- Structural wave counts align with historical patterns preceding final parabolic moves.
- Institutional adoption via ETFs continues to deepen market resilience.
- Retail interest remains strong, amplified by memecoins and cultural engagement.
- DePin and other emerging narratives are laying groundwork for next-phase innovation.
This correction, while prolonged, lacks the momentum breakdown and sentiment collapse typically seen at true market tops. Instead, it reflects healthy digestion after a rapid ascent—consistent with mature bull markets.
Frequently Asked Questions (FAQ)
Q: How long do crypto corrections usually last?
A: Historically, major corrections during bull runs last between one to eight weeks. The current 112-day drawdown is unusually long but not unprecedented when aligned with macro timing and structural patterns.
Q: Can Bitcoin still hit six figures?
A: Many analysts believe so—especially if ETF inflows continue and macro conditions turn favorable. A breakout above $100K could trigger widespread institutional and retail FOMO.
Q: Are memecoins harmful to the crypto market?
A: Not necessarily. While speculative, they onboard new users and generate media attention that benefits the broader ecosystem—provided investors understand the risks.
Q: What comes after this correction?
A: Based on technical structure and historical precedent, another upward leg is likely before a long-term bear market begins.
Q: How reliable are Elliott Wave predictions?
A: They work best when combined with other indicators like RSI, MACD, and volume analysis. While subjective in counting waves, they provide valuable framework for understanding market psychology.
Q: Is now a good time to buy?
A: For long-term investors, corrections offer strategic entry points—especially in foundational assets like Bitcoin and Ethereum. Dollar-cost averaging helps mitigate timing risk.
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Final Thoughts
The current crypto market correction stands out for its duration but aligns closely with key technical and cyclical patterns observed in prior bull markets. With institutional adoption accelerating, new narratives emerging, and technical models pointing toward one final surge, the evidence suggests the bull run is likely not over.
Core keywords: crypto market correction, Bitcoin price prediction, Ethereum all-time high, cryptocurrency ETF impact, memecoins, DePin, Elliott Wave analysis, market cycle comparison
While uncertainty remains inevitable in such a volatile asset class, informed analysis—and disciplined strategy—can help investors navigate these choppy waters with greater confidence.