Crypto analyst Rekt Capital reports that Bitcoin has broken a downtrend, flipping it to support above $85,000. He suggests BTC is entering the “Banana Zone” for parabolic expansion, with expectations for new all-time highs but also bumpy corrective phases. Currently, Bitcoin is trading at $87,523. The Daily Hodl advises caution and due diligence for investors.
A notable crypto analyst, Rekt Capital, reports that Bitcoin (BTC) has successfully broken a downtrend, demonstrating strong price movement. The analyst, who has a following of 543,000 on X, emphasises that BTC has breached diagonal resistance and established it as support, particularly while trading above $85,000. This marks the first successful retest of the broken downtrend since its formation.
Further analysis indicates that Bitcoin may currently be in the initial corrective stage of the “Banana Zone,” implying a phase of parabolic expansion after surpassing last cycle’s peak values. Rekt Capital predicts that BTC is positioned to reach new all-time highs before entering another corrective phase in its bullish trend.
Despite theoretical expectations for parabolic growth, the current market indicates consolidation rather than rapid escalation. The “Banana Zone” metaphorically represents a phase characterized by significant price activity post-old all-time highs. Historically, BTC’s trajectory towards these new highs has experienced volatility, particularly around previous peak regions.
Rekt Capital suggests that following the impending price surge, Bitcoin will likely face subsequent corrections, typically occurring during price discovery stages. As of now, BTC is trading at approximately $87,523, pointing to ongoing market engagement.
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