Bitcoin and gold could be on track to a significant price breakout as macroeconomic conditions improve.

The beginning of “macro summer” could lead to a Bitcoin ( BTC ) price breakout in the near term, according to Raoul Pal, the founder and CEO of Global Macro Investor, who wrote in a July 29 X post :

“Macro Summer is beginning to take hold and should last at least for the rest of 2024 and into 2025… Bitcoin is ready to soon break the giant cup and handle and head into the Banana Zone.”
Bitcoin, gold on track to break out as ‘macro summer’ begins: Analyst image 0 BTC, cup and handle formation, weekly chart. Source: Raoul Pal

The “Banana Zone” is a term coined by Pal to describe a period of significant upward price movement. In this case, it suggests that Bitcoin price could break out to a new all-time high.

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Bitcoin needs a close above $70,000 to confirm the breakout

According to Pal, Bitcoin will confirm a move toward a new record high when it breaks out of the current cup and handle formation, a technical chart pattern used to spot bullish uptrend continuations.

This confirmation will come once Bitcoin price breaches the $70,000 mark, according to crypto trader Moataz Elsayed, also known as “Eljaboom.” The trader wrote in a July 28 X post:

“BTC Massive Cup And Handle [formation]. A weekly close above $70,000 and the game will be over for bears!”
Bitcoin, gold on track to break out as ‘macro summer’ begins: Analyst image 1 BTC/USD, 1-week chart. Cup and Handle formation. Source: Eljaboom

Contributing to the bullish sentiment, Bitcoin’s open interest reached a new all-time high on July 29, pointing to increased interest and liquidity in the world’s first cryptocurrency, that could result in a breakout.

Related: World’s largest BTC miner Marathon buys $100M BTC to go ‘full HODL’

This is a developing story, and further information will be added as it becomes available.