Bitcoin has fallen 54% from its all-time high of $126,000, but historical patterns suggest a recovery could be on the horizon. The cryptocurrency typically follows a four-year boom-and-bust cycle, and the current decline mirrors past downturns such as the 64% drop in 2022 before a subsequent rally. Potential catalysts for a rebound include the expected passage of the Digital Asset Market Clarity Act, congressional plans to expand the U.S. Strategic Bitcoin Reserve, and the next Bitcoin halving event in early 2028. Based on this cycle, Bitcoin could begin recovering in 2027 and rally strongly in 2028.