Bitcoin Price Is About to Enter the “Banana Zone” Rally According to Analysts

Gert van Lagen, a well-known technical analyst, believes Bitcoin is on the verge of a significant price surge. In a recent post on X, van Lagen pointed to Bitcoin’s weekly chart to support his optimistic outlook. 

Currently, Bitcoin is trading at $62,290. If van Lagen’s prediction is accurate, the cryptocurrency could skyrocket to $200,000 in this cycle. 

Bitcoin Nearing a Breakout? 

Van Lagen shared a chart showing a parabolic curve forming since 2021. This chart also features a “Cup and Handle” pattern, which usually signals a bullish trend. 

The Cup and Handle pattern starts with a rounded cup shape, indicating a shift from a downtrend to an uptrend. This is followed by a brief period of consolidation, known as the handle, before a potential breakout. 

According to van Lagen, Bitcoin is currently in the handle phase, suggesting that a major price move, which he refers to as entering the “banana zone,” could be imminent. The term “banana zone,” popularized by Raoul Pal, describes a phase of explosive growth for Bitcoin and other cryptocurrencies. 

Adding to this bullish sentiment, the Long-Term Holder Market Inflation metric, which tracks accumulation or distribution rates, is showing signs that could align with van Lagen’s prediction. Higher values in this metric suggest increased selling pressure, while lower values indicate that long-term holders are accumulating. 

Historically, Bitcoin’s price tends to peak when this metric is at its highest. However, since early August, the Long-Term Holder Market Inflation has been on the decline. If this trend continues, Bitcoin could see a strong rebound. 

Short-Term Outlook: $64,000 in Sight? 

On the shorter 4-hour chart, Bitcoin appears ready to break out of its recent downtrend. A buy signal here could push the price to around $64,240. 

However, key support levels at $61,839 and $60,680 are crucial. If Bitcoin falls below $61,839, it could drop further to $60,680. On the other hand, if the bulls manage to hold these levels, the price could surge past $64,000. 

Beyond technical analysis, Bitcoin ETFs have seen consistent inflows for nearly ten days, echoing the conditions that led to Bitcoin’s all-time high in March. If these inflows continue, Bitcoin could rally to $70,000 in the coming weeks. 

Michaël van de Poppe, another analyst, also believes Bitcoin could reach a new all-time high if it stays above $62,000. However, if Bitcoin fails to hold above $61,839, the bullish scenario might falter, potentially leading to a drop below $60,000.