Bitcoin (BTC) could soon enter a euphoric “banana zone” phase that could send prices soaring higher, but crypto analysts say a reversal of three major trends is needed first.
“Essentially, this is the boredom zone before the banana zone,” Julian Bittel, head of research at Global Macro Investor (GMI), wrote in a June 18 Xinhua News Agency article. post.
The Banana Zone is a term coined by GMI founder and crypto industry leader Raoul Pal to describe a period of significant price growth.
However, analysts at CryptoQuant I believe A sustainable recovery depends on a turnaround in three “key” indicators:
According to anonymous author IT Tech of CryptoQuant, Bitcoin miners need to reduce sell-offs, which have been on the rise since mining revenues “fell 55%.”
Bitcoin miners’ profits have fallen significantly since Bitcoin hit an all-time high of $73,679 in March.
According to Blockchain.com, daily revenue from block rewards and transaction fees reached approximately $78.89 million on March 11, but has since fallen by about 56%. data By June 12, it had reached $34.26 million.
The analyst also stressed the need for increased inflows of stablecoins, as a lack of “new issuance” in the market has reduced liquidity, affecting price fluctuations.
The amount of stablecoins held in crypto exchange reserves has fallen by around 10% over two months, according to CryptoQuant, and now stands at $21.96 billion. data.
Finally, outflows from Bitcoin exchange-traded funds (ETFs) such as those from Fidelity and Grayscale Investments need to decrease as they are “creating selling pressure for Bitcoin,” the analyst said.
According to data from The Farside, on June 18, the Fidelity BitcoinWise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust ETF (GBTC) Spill They were $83.1 million and $62.3 million, respectively.
Traders expect a move away from “sideways” in the near term
Bitcoin is currently trading at $64,966, down 2.35% over the past 30 days, according to CoinMarketCap. dataIt’s down 12% from its all-time high of $73,679 in March, and IT Tech believes this could be the “bottom of the market.”
Altcoins took an even bigger hit last week, with major altcoins such as Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) experiencing declines of 8.23%, 11.67%, and 16.31%, respectively, over the course of seven days.
Related: Bitcoin’s 92-day consolidation is setting up a ‘massive’ rally – trader
While BitTel commented that Bitcoin’s lack of price movement indicates it’s in a “sideways period,” other traders are expecting a reversal in direction in the short term.
“A break above this descending trend line will see BTC begin a price reversal,” said anonymous crypto trader Recto Capital. I have written On June 18, after acknowledging that Bitcoin had been in a “sustained downward trend” throughout the month of June.
magazine: Ethereum’s Recent Drop Could Be a Gift: Dynamo DeFi, X Hall of Flame
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
