Bitcoin could soon enter a euphoric “Banana Zone” phase that could see its price surge, but crypto analysts say there first needs to be a reversal in three key trends.
“Basically, it’s The Boring Zone before The Banana Zone,” Global Macro Investor (GMI) head of research Julien Bittel wrote in a June 18 X post.
The Banana Zone is a term created by GMI founder and crypto OG Raoul Pal to describe a period of significant upward price movement.
However, an analyst from CryptoQuant believes that sustainable recovery will hinge on three “critical” indicators turning around.
According to CryptoQuant’s pseudonymous author, IT Tech, Bitcoin BTCUSD miner selling needs to reduce, and it has only been increasing since mining revenue “dropped by 55%.”
Bitcoin miners have seen a major decline in revenue since Bitcoin reached its all-time high of $73,679 in March.
On March 11, block rewards and transaction fees revenue reached around $78.89 million daily. However, according to Blockchain.com data, it decreased by approximately 56% until June 12 and stands at $34.26 million at the time of writin
The analyst also highlighted the need for increased stablecoin inflows, given the absence of “new issuances” in the stablecoin market, which decreases liquidity and affects price volatility.
The amount of stablecoins held in crypto exchange reserves has decreased by nearly 10% over two months, currently standing at $21.96 billion, according to CryptoQuant data.
Lastly, outflows from spot Bitcoin exchange-traded funds (ETFs), such as those from Fidelity and Grayscale Investments, need to decrease, as they are “creating selling pressure for Bitcoin,” said the analyst.
According to Farside data, on June 18, Fidelity Bitcoin Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust ETF had outflows of $83.1 million and $62.3 million, respectively.
Traders anticipate a move from the ‘sideways chop’ in near term
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 in March. IT Tech believes this could be a “market bottom.”
Altcoins have suffered more heavily in the last week. Major altcoins like Solana’s SOLUSD, Dogecoin DOGEUSD and Shiba Inu SHIBUSD have experienced seven-day declines of 8.23%, 11.67%, and 16.31%, respectively.
Bittel commented that Bitcoin’s lack of price movement indicates it is in a “period of sideways chop,” while other traders anticipate a directional shift in the near term.
“Break this downtrend line and BTC will initiate a price reversal,” pseudonymous crypto trader Rekt Capital wrote on June 18, after acknowledging that Bitcoin has been in a “constant downtrend” all of June.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
