Bitcoin (BTC) could soon enter a euphoric “Banana Zone” phase that could see its price surge, but crypto analysts say there first needs to be a reversal in three key trends.

“Basically, it’s The Boring Zone before The Banana Zone,” Global Macro Investor (GMI) head of research Julien Bittel wrote in a June 18 X post.

The Banana Zone is a term created by GMI founder and crypto OG Raoul Pal to describe a period of significant upward price movement.

However, an analyst from CryptoQuant believes that sustainable recovery will hinge on three “critical” indicators turning around.

According to CryptoQuant’s pseudonymous author, IT Tech, Bitcoin miner selling needs to be reduced. It has only been increasing since mining revenue “dropped by 55%.” 

Bitcoin miners have seen a major decline in revenue since Bitcoin reached its all-time high of $73,679 in March.

Reaching around $78.89 million in daily revenue earned from block rewards and transaction fees on March 11, it has since decreased by approximately 56%, according to Blockchain.com data up to June 12, now standing at $34.26 million.

The analyst also highlighted the need for an increase in stablecoin inflows, given the absence of “new issuances” in the stablecoin market, which decreases liquidity and affects price volatility.

The amount of stablecoins held in crypto exchange reserves has decreased by nearly 10% over two months, currently standing at $21.96 billion, according to CryptoQuant data.

Lastly, outflows from Bitcoin exchange-traded funds (ETFs), such as those from Fidelity and Grayscale Investments, need to decrease, as they are “creating selling pressure for Bitcoin," said the analyst.

According to Farside data, on June 18, Fidelity Bitcoin Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust ETF (GBTC) had outflows of $83.1 million and $62.3 million, respectively.

Traders anticipate a move from the 'sideways chop' in near term

Bitcoin is currently trading at $64,966, down 2.35% over the past 30 days, according to CoinMarketCap data. It is down 12% from its all-time high of $73,679 in March. IT Tech believes this could be a “market bottom."

Altcoins have suffered more heavily in the last week. Major altcoins like Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) have experienced seven-day declines of 8.23%, 11.67%, and 16.31%, respectively.

Related: Bitcoin 92-day consolidation is setting up a ‘massive’ rally — Traders

Bittel commented that Bitcoin’s lack of price movement indicates it is in a “period of sideways chop,” while other traders anticipate a directional shift in the near term.

“Break this downtrend line and BTC will initiate a price reversal,” pseudonymous crypto trader Rekt Capital wrote on June 18, after acknowledging that Bitcoin has been in a “constant downtrend” all of June.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.