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Financial expert Raoul Pal says Bitcoin’s 20% correction is only temporary as euphoria will return
Co-founder and CEO of Real Vision, Raoul Pal shed light on the current market status and future prospects of Bitcoin, the world’s largest cryptocurrency. Despite the cryptocurrency witness to decline by more than 15%, the financial expert discovered a significant pattern that indicates a potential bullish flag following the Bitcoin price correction.
Cryptocurrency Expert Reveals Bitcoin’s ‘Banana Zone’
In an X post (formerly Twitter) published on Tuesday, April 28, Pal sharing a yearly chart showing Bitcoin price movements from October 2023 to April 2024. At the time of writing, Bitcoin price trades below $60,000at $59,185, marking monthly declines of 15.12% and weekly lows of 11.31%, according to CoinMarketCap.
The crypto analyst suggested that Recent Bitcoin Price Correction This is a temporary setback. He predicts that once the market is fully refreshed, what he calls “the banana zone” will kick in. He also described Bitcoin’s recent price drops as a “refreshing pause.”
The break focuses on the final days of the crypto springa period marked by a resurgence of optimism after bear markets. A perfect illustration of this phase occurred when Bitcoin hits new all-time highssurpassing $73,000 in March, after its decline from 2022 to 2023.
In contrast, the Banana Zone represents a phase characterized by intense market excitement and the possibility of significant price increases. However, Pal described this particular period as “when the market starts to embrace the new big L1 or L2, which explodes even against SOL.”
The financial expert noted that once the banana zone starts, it could gain momentum towards the end of the year and continue until 2025, potentially reaching a peak of mania. He also shared a historical pictorial analysis illustrating its Bitcoin Predictions.
In the graph, the Bitcoin price witnessed a rise in the banana zone from $1,000 to $5,000 between 2014 and 2016 and from $10,000 to $60,000 between 2019 and 2020. Basing his forecast on this unique historical pattern, Pal suggested that Bitcoin’s price action from 2022 to 2024, starting at $50,000, could potentially skyrocket to a new all-time high of $300,000.
Cryptocurrency Summer Marks Start of Altcoin Season
Pal a predicted that after the crypto spring, a new season for cryptocurrencies will occur, called “crypto summer”. The financial expert confirmed that this period will be the Altcoin season beginsstressing that it is usually marked by an intense bubble in the fall of cryptocurrencies.
During crypto summerPal projects that Ethereum would start to surpass Bitcoin while Solana would accelerate its outperformance against Bitcoin and EthereumThe financial CEO revealed that the summer and fall of cryptocurrencies are often confusing, as cryptocurrencies tend to adopt a narrative and can get carried away by the surrounding euphoria.
He predicts two or more “nasty corrections” triggered by excessive leverage before the banana zone begins. In addition, Pal indicated that three or four Cryptocurrencies are set to lead the altcoin seasonwith one particular cryptocurrency emerging as the “big new entrant,” just like Solana produced during the previous cycle alongside Avalanche and Polygon.
BTC crashes below $60,000 support | Source: BTCUSD on Tradingview.com
Featured image by RBK, chart by Tradingview.com