Bitcoin's 'Banana Zone' May Be Near, But Three Key Indicators Must Reverse First

Bitcoin's 'Banana Zone' may be on the horizon, but three key indicators need to reverse first. Find out what needs to change for a sustainable recovery in the cryptocurrency.

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Bitcoin’s ‘Banana Zone’ May Be Near, But Three Key Indicators Must Reverse First

The Bitcoin “Banana Zone” - a euphoric phase of significant upward price movement - may be on the horizon, but not before three key metrics reverse their current trends. This is according to crypto analysts, who believe that a reversal of these indicators is necessary for a sustainable recovery in the cryptocurrency.

Bitcoin’s price has been consolidating in recent weeks.

The Boring Zone Before The Banana Zone

Global Macro Investor head of research Julien Bittel recently stated that the cryptocurrency is currently in “The Boring Zone” before it can enter “The Banana Zone.” The latter is a term coined by GMI founder and crypto OG Raoul Pal to describe a period of rapid price growth.

Bitcoin mining revenue has decreased significantly since March.

Miners Need to Reduce Selling Pressure

One of the key indicators that needs to reverse is the selling pressure from Bitcoin miners. According to CryptoQuant, the daily revenue of Bitcoin miners has decreased by approximately 56% since March, leading to increased selling pressure on the cryptocurrency.

The stablecoin market has seen a decrease in liquidity in recent months.

Stablecoin Inflows Need to Increase

Another indicator that needs to reverse is the decrease in stablecoin inflows. According to CryptoQuant data, the amount of stablecoins held in crypto exchange reserves has decreased by nearly 10% over the past two months, leading to decreased liquidity and increased price volatility.

ETF outflows Outflows from spot Bitcoin exchange-traded funds (ETFs) need to decrease.

ETF Outflows Need to Decrease

Lastly, outflows from spot Bitcoin ETFs, such as those from Fidelity and Grayscale Investments, need to decrease. According to Farside data, these ETFs had outflows of $83.1 million and $62.3 million, respectively, on June 18. These outflows are creating selling pressure on Bitcoin and need to reverse for a sustainable recovery.

The crypto market has been experiencing a period of consolidation in recent weeks.

The Market Bottom May Be Near

Many traders believe that the current price action is indicative of a market bottom, and that a reversal in these three key indicators could lead to a significant price increase. Altcoins have suffered heavily in the last week, with major altcoins like Solana, Dogecoin, and Shiba Inu experiencing significant declines.

Bitcoin price graph Bitcoin’s price has been consolidating in recent weeks.

A Directional Shift May Be Near

Traders are anticipating a directional shift in the near term, with some predicting a break above the current downtrend line. If this occurs, it could lead to a significant price increase and the entrance into the “Banana Zone.”