Raoul Pal Says Bitcoin’s Banana Zone Signals What’s Next

• Bitcoin is currently battling to rise above the $94,500 mark.
• Raoul Pal explained the phases of the ‘banana zone’.
• The CEO addressed the speculation about BTC retesting $75,000 levels.

Bitcoin has moved into the green zone, rising above $94,000 after briefly dipping below $92,500. Many are now questioning its uncertain movement and what might happen next. Amid the market uncertainty, founder of Real Vision Raoul Pal, on a recent podcast opened up about the concept of the “Banana zone.” The CEO also took to X (formerly Twitter) and wrote, “we are still in the Banana Zone.”

What Is the Banana Zone?

Raoul Pal explained the Banana Zone as a sequence of phases Bitcoin undergoes within its market cycles. The first stage typically involves a rapid surge in price, as we saw when Bitcoin soared from $50,000 to $100,000. After such a sharp increase, the market tends to correct, often causing panic among investors. However, this correction is a normal part of the cycle, and while it may seem concerning in the short term, it usually precedes the next phase: Altseason.

The Phases of the Banana Zone

1. The Initial Surge

In the first phase, Bitcoin experiences a sharp rise in value, often causing excitement across the market. This is what happened when Bitcoin hit $100,000. It’s a period of aggressive price movement that often creates a sense of euphoria.

2. The Correction Phase

Following the initial surge, Bitcoin typically enters a correction phase, where its price consolidates or drops slightly. This part often sees fear and uncertainty in the market as investors worry about the longevity of the rally. 

3. Altseason

Once the correction phase stabilizes, the next stage is altseason, where altcoins tend to outperform Bitcoin. During this period, many cryptocurrencies experience gains, and it feels like “any coin can make money.” Pal said this phase often lasts through to April, and although altcoins dominate, Bitcoin remains an important part of the market. 

What’s Happening Now?

A lot of speculation surrounds whether the market has reached its peak. Many fear that the market is about to collapse or that Bitcoin could crash to $75,000. However, Pal suggests that many of these concerns are overblown.

He draws parallels to the 2017 cycle when Bitcoin experienced a similar setup. Back then, the market was highly affected by external factors like the U.S. dollar’s strength and geopolitical tensions under President Trump’s leadership.

However, despite these issues, Bitcoin surged in value, helped by a weakening dollar and global liquidity changes. Pal assured that the current market is following a similar pattern.