Rekt Capital: Bitcoin is approaching another banana zone

Despite the recent decline in bitcoin BTC $81,943.17 Bitcoin -1.17% Market capitalization $1.63 trillion VOL. 24 hours $0.89 billion , an analyst with the pseudonym Rekt Capital believes that the cryptocurrency’s strong growth is still ahead. He recalls the concept of the so-called «banana zone,» a period of rapid and explosive price growth that was typical of previous bitcoin market cycles. According to the expert, what is happening now is just a correction within the upward trend.

The analyst, who accurately predicted the correction of BTC before the halving last year, notes that the banana zone is not a straight line upward. It consists of several stages: initial growth, correction, a new price breakout, and another pullback. This is exactly how events unfolded in the previous cycles of 2017 and 2021.

To support its opinion, Rekt Capital cites statistics: in 2021, there were at least three such corrections during the banana zone phase, and in 2017 — four. The analyst calls the current decline «the first price correction in the price discovery period» and suggests that there may be one or two more such pullbacks before the final growth phase begins.

As of the time of writing, bitcoin was trading at $ 87,449, showing no significant changes over the day. However, the expert emphasizes that such dynamics is a natural part of a larger trend, and one should not panic because of temporary deviations.