Cryptocurrencies

Bitcoin (BTC) could soon enter the euphoric “banana zone” phase that we could witness

Bitcoin (BTC) may soon enter a euphoric “banana zone” phase that could see its price rise, but cryptocurrency analysts say there must first be a reversal of three major trends.

“Basically, it’s the boring zone before the banana zone,” Julian Bittel, head of research at Global Macro Investor (GMI), wrote in a June 18 article.

Banana Zone is a term created by GMI founder and cryptocurrency OG Raoul Pal to describe a period of significant upward price movement.

However, a CryptoQuant analyst believes that a sustainable recovery will depend on three “critical” indicators.

Bitcoin has fallen 3.06% over the past seven days. Source: CoinMarketCap

According to the pseudonymous author of CryptoQuant, IT Tech, the sale of Bitcoin miners should be reduced. This percentage has increased since “mining revenues have fallen by 55%”.

Bitcoin miners have seen a significant drop in revenue since Bitcoin hit an all-time high of $73,679 in March.

It reached about $78.89 million in daily revenue generated from block rewards and transaction fees on March 11, but has since fallen about 56%, according to Blockchain.com data through June 12 , where it now stands at $34.26 million.

The analyst also highlighted the need to increase stablecoin flows, given the lack of “new issuance” in the stablecoin market, which reduces liquidity and affects price volatility.

The amount of stablecoins held in cryptocurrency exchange reserves has fallen by around 10% over two months and currently stands at $21.96 billion, according to data from CryptoQuant.

Finally, the analyst said outflows from exchange-traded funds (ETFs), such as those from Fidelity and Grayscale Investments, are expected to decline as they “create selling pressure on Bitcoin.”

According to Farside data, on June 18, the Fidelity Bitcoin Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust ETF (GBTC) saw outflows of $83.1 million and $62.3 million, respectively.

Traders expect short-term ‘sideways cut’ move

Bitcoin is currently trading at $64,966, down 2.35% over the past 30 days, according to CoinMarketCap data. It is down 12% from its all-time high of $73,679 reached in March. IT believes this could be the “bottom of the market.”

Altcoins suffered again last week. Major altcoins such as Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) saw seven-day declines of 8.23%, 11.67%, and 16.31%, respectively.

about: Bitcoin’s 92-Day Consolidation Leads to “Huge” Rally – Traders

Bittel commented that Bitcoin’s lack of price action indicates that it is going through a “sideways cut period,” while other traders expect a near-term trend change.

“Break this downtrend line and Bitcoin will begin a price reversal,” pseudonymous crypto trader React Capital wrote on June 18, after admitting that Bitcoin had been in a “continuous downtrend” throughout the month of June.

Source: Reckitt Capital

review: Recent Ethereum Pullback Could Be a Gift: Dynamo DeFi, X Hall of Flame

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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