A widely followed analyst says that the crypto markets may be on the verge of an explosive breakout due to one key factor.
In a new thread, crypto trader Michaël van de Poppe tells his 783,200 followers on the social media platform X that the cutting of interest rates by central banks to prop up the economy may cause a “banana zone” based on the historical relationship between digital assets and liquidity levels.
The banana zone is a term used by crypto analysts to describe a period of rapid and explosive price growth for digital assets.
“ECB (European Central Bank) doing a rate cut. Trump attacking [Fed Reserve chair] J. Powell. It’s around the corner, the Banana Zone.”
Next up, the analyst says that Bitcoin (BTC) is gaining upside momentum and may be on the verge of breaking through a key resistance level at $86,549.
“Bitcoin is approaching $85,000 and targets the breakout. Getting excited. Good things are coming.”
The analyst believes Bitcoin may regain the six-figure level before the end of June.
“Bitcoin is still nicely consolidating between the two levels. The test at $87,000 did happen, and I think that we’ll see a big breakout once we’ll retest it again. What’s next? Likely a run to an all-time high at the end of this quarter.”
The analyst also says that Bitcoin must hold $80,000 as support to remain in an uptrend.
“Bitcoin is still stuck in the range, and as long as it stays above $80,000, I think we’ll be fine with further upwards momentum on this one.”
Bitcoin is trading for $84,572 at time of writing, flat on the day.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
