Despite recent pullbacks, Rekt Capital emphasizes that a strong long-term upward trend for Bitcoin
$ 87,054 remains plausible. The analyst notes that the current phase, termed the “banana zone,” is a typical part of the correction process leading up to the halving event. This period consists of not only sudden increases but also the expected corrections, supported by historical examples. According to Rekt Capital, there’s no need for panic among traders as such pullbacks are common during price discovery phases and often serve to strengthen the overall upward trend.
What Does the “Banana Zone” Mean?
Rekt Capital characterizes Bitcoin’s current state as a “banana zone,” marked by fluctuations yet an overall upward direction. This phase is not merely a one-time spike but a series of price movements. The process involves an initial rise followed by a correction, leading to another upward movement and a subsequent correction. The analyst views the current decline as the first correction in this process.
Citing graphical analyses, Rekt Capital highlights that this phase inherently contains both rises and falls. Thus, investors should not assume that a decline signals the end of the bullish trend. Conversely, such pullbacks often prepare the ground for the next parabolic move.
How Many Corrections Have Occurred in the Past?
The analyst refers to market cycles in 2017 and 2021 as examples, stating that the current correction might be just the first stop. He recalls that there were four corrections in 2017 and three in 2021, suggesting a similar process may occur now. This indicates that the current decline is a natural part of the development process.
Rekt Capital suggests that another correction could follow the current price pullback, advising investors to be prepared. While the frequency and severity of corrections may vary, he asserts that the overall trend remains upward, and these fluctuations are a natural aspect of “the big picture.”
As of the writing, Bitcoin is trading at approximately $87,305. The crypto market is cautiously advancing with rising expectations.