A closely followed crypto analyst says that Bitcoin (BTC) has successfully broken a downtrend with strong price action.
The pseudonymous analyst known as Rekt Capital tells his 543,000 followers on the social media platform X that BTC has successfully broken a diagonal resistance and flipped it into support after staying above $85,000.
“Bitcoin hasn’t just broken the Downtrend and successfully retested it as support for the first time since Downtrend formation
But Bitcoin has also been able to sustainably maintain above the Downtrend for a period of several consecutive days now.”
Source: Rekt Capital/X
Rekt Capital also says that BTC is likely in the first corrective stage of the “Banana zone,” or a phase of parabolic expansion for Bitcoin after breaking last cycle’s highs.
The analyst suggests that BTC will soon soar to new all-time highs before entering a new corrective phase and a final launch to its bull market peak.
“Technically, we should be seeing parabolic upside, but instead we’re getting [consolidation]. The ‘Banana Zone’ is a term of endearment for the parabolic phase of the cycle when it comes to Bitcoin’s price action whenever it breaks beyond old all-time highs into new all-time highs.
What happens with Bitcoin’s price action when it breaks to new all-time highs is, yes, we do see a parabolic ascension to those new all-time highs but sometimes when we break to new all-time highs, it can get a little bit bumpy, so it tends to be bumpy in and around the old all-time high region and it tends to be also bumpy once we’ve rallied to new all-time highs…
What that means is we’re going to see additional upside, so that gets us into the corrective phase two. We tend to see at least two corrective periods in price discovery.”
At time of writing, BTC is trading at $87,523.
Generated Image: Midjourney
