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.”
Source: Michaël van de Poppe/XThe 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.”
Source: Michaël van de Poppe/XThe 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.”
Source: Michaël van de Poppe/XBitcoin is trading for $84,572 at time of writing, flat on the day.
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