An analyst who successfully predicted Bitcoin’s pre-halving correction last year believes that a significant BTC price surge is still possible, despite the ongoing correction this month.
The analyst, known by the pseudonym Rekt Capital, informs his 107,000 YouTube followers that Bitcoin is currently in what’s referred to as the “banana zone” according to historical trends.
The banana zone is a term used by cryptocurrency analysts to define a phase characterized by swift and substantial price increases for digital currencies.
“This is still the banana zone. It’s important to note that the banana zone doesn’t manifest as a single vertical line moving upward. Rather, it consists of an upward trend, followed by an initial price discovery correction, a subsequent price discovery uptrend, and another correction. The chart also illustrates that we can expect a correction phase here and another further down the line. However, all of this is part of the necessary process within an otherwise robust, parabolic upward trend.”
He also notes that previous cycles experienced multiple corrections during the banana zone and forecasts Bitcoin may repeat a similar trend.
“These price discovery corrections can happen quite often…
If we consider the current pullback, this represents the first price discovery correction. In 2021, there were three, and in 2017, there were four. I anticipate at least one more price discovery correction is likely to occur moving forward.”
At the time of writing, Bitcoin is priced at $87,305, remaining stable throughout the day.
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