Bitcoin (BTC) has recently marked a significant milestone, according to a widely followed crypto analyst. The pseudonymous analyst Rekt Capital has revealed that Bitcoin has broken its long-standing downtrend and is now entering a phase of parabolic expansion. This new phase could lead the cryptocurrency to new all-time highs before encountering another market correction.

Breaking the Downtrend: A Key Milestone for Bitcoin

In a recent update shared with his 543,000 followers on X (formerly Twitter), Rekt Capital highlighted that Bitcoin has managed to not only break a crucial diagonal resistance but also successfully flip it into support. This shift occurred after Bitcoin maintained a price above $85,000 for several consecutive days.

“Bitcoin hasn’t just broken the downtrend and successfully retested it as support for the first time since the downtrend formation,” Rekt Capital stated. “But Bitcoin has also been able to sustainably maintain above the downtrend for a period of several consecutive days now.”

This marks a critical turning point for Bitcoin, suggesting that the cryptocurrency has begun to shift from its previous bearish momentum to a more bullish outlook. According to Rekt Capital, this could be the beginning of a major rally for the asset.

Entering the ‘Banana Zone’: Parabolic Expansion Ahead

Rekt Capital went on to explain that Bitcoin is likely in the first corrective stage of what he refers to as the “Banana Zone,” a term used to describe the parabolic phase of Bitcoin’s price action. The “Banana Zone” occurs when Bitcoin breaks past its previous all-time highs and enters a new phase of price discovery. During this period, Bitcoin typically experiences rapid price ascension, but it is often accompanied by some volatility and bumpy movements near the old all-time highs.

According to the analyst, the “Banana Zone” is an important phase in Bitcoin’s market cycle. It is characterized by a surge in Bitcoin’s price as it reaches new all-time highs, but this ascent can be volatile. Rekt Capital suggests that once Bitcoin breaks into this phase, there will likely be additional upside, followed by a corrective phase before the next major bull run.

“Technically, we should be seeing parabolic upside, but instead, we’re getting consolidation,” said Rekt Capital. “What happens with Bitcoin’s price action when it breaks to new all-time highs is, yes, we do see a parabolic ascension to those new all-time highs, but sometimes when we break to new all-time highs, it can get a little bit bumpy. So, it tends to be bumpy in and around the old all-time high region, and it tends to be also bumpy once we’ve rallied to new all-time highs.”

What’s Next for Bitcoin’s Price?

As of the latest data, Bitcoin is trading at $87,523, which reflects its continued upward momentum. While the market may experience some consolidation in the short term, the analyst is confident that Bitcoin will soon see further upside and is likely to set new all-time highs.

However, as Rekt Capital points out, Bitcoin is not expected to experience a smooth, uninterrupted rise. The price action around new all-time highs could be volatile, and after this initial surge, Bitcoin is likely to enter another corrective phase before reaching the peak of its next bull market.

Final Thoughts: A Bright Future for Bitcoin

Bitcoin’s recent price action and its ability to break through long-standing resistance levels have created a strong foundation for future growth. The move into the “Banana Zone” suggests that Bitcoin could soon experience parabolic growth, pushing its price to new all-time highs.

As Bitcoin continues to break away from its downtrend, traders and investors are closely watching for signs of sustained upward momentum. With predictions of further price surges in the near future, Bitcoin’s next moves could be crucial in determining whether the cryptocurrency is ready for another major bull run.

Conclusion: Bitcoin’s Next Bull Market Looms

Bitcoin’s ability to break its downtrend and enter the “Banana Zone” signals that the cryptocurrency is poised for significant growth. While some volatility is expected as Bitcoin approaches new all-time highs, the overall outlook remains bullish. For those invested in Bitcoin, the coming months could be an exciting and profitable time as the cryptocurrency moves closer to its next parabolic expansion phase.