If these 3 indicators are played, Bitcoin is next to the ‘Banana Zone’
Bitcoin (BTC) may soon enter a “banana zone” phase that could see its price rise, but crypto analysts say it must first reverse in three key trends.
“Essentially, it's the boring zone before the banana zone,” wrote Julien Bittel, head of research at Global Macro Investor (GMI), in a June 18 X post.
The Banana Zone was created by GMI founder and crypto OG Raoul Pal to describe a period of large price movement.
However, CryptoQuant analysts believe that a sustained recovery will hinge on three “critical” indicators.
According to CryptoQuant's pseudonymous author, IT Tech, the sale of Bitcoin miners should be reduced. Mining revenue has been on the rise since it was said to have “fallen by 55%”.
Bitcoin miners have seen a sharp drop in revenue since Bitcoin hit a record high of $73,679 in March.
On March 11, the daily income from rewards and transaction fees reached about $78.89 million, since then it has decreased by approximately 56%, according to data from Blockchain.com, as of June 12, it now stands at $34.26 million.
The analyst pointed out that due to the lack of “new issues” in the Statcoin market, it is necessary to increase the flow of “Statcoin”, which reduces the price volatility.
According to CryptoQuant data, the amount of stablecoins in crypto exchange reserves decreased by almost 10%.
Finally, outflows from Bitcoin exchange-traded funds (ETFs) such as Fidelity and Grayscale Investments should slow, as they are “creating selling pressure for Bitcoin,” the analyst said.
According to Farside data, on June 18, Fidelity Bitcoin Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust ETF (GBTC) had $83.1 million and $62.3 million respectively.
Traders expect ‘side chop' action in the near term.
According to CoinMarketCap data, Bitcoin is currently trading at $64,966, down 2.35% over the past 30 days. That's down 12 percent from an all-time high of $73,679 in March. IT Tech believes this could be a “market low”.
Altcoins have suffered more in the past week. Major altcoins such as Solana (SOL), Dogecoin (DOGE) and Shiba Inu (SHIB) saw declines of 8.23%, 11.67% and 16.31% respectively.
Related: Bitcoin 92-Day Consolidation Is Preparing for a ‘Massive' Rally – Traders
Bittel indicates that Bitcoin's lack of price movement is in a “side-cutting period,” while other traders say they expect a change in direction in the near future.
“Break this low line and BTC will begin a price reversal,” wrote pseudonymous crypto trader Rect Capital on June 18.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
