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As the week progressed, the price of Bitcoin (BTC) gradually climbed to its all-time high of $73,700 in March this year. This upward dynamic is in line with the predictions from various market experts, expecting significant gains for the leading cryptocurrency by the end of the year.
One such expert, crypto analyst Gert van Lagen, recently shared his insights on Bitcoin’s price trajectory via social media platform X (formerly Twitter). He analyzed BTC’s parabolic curve and identified a distinctive step-shaped formation pattern, which he believes signals colossal impact. rally wave 5 in the coming months.
Potential “upheaval of the century”
In his analysisvan Lagen presented a Bitcoin chart demonstrating that the cryptocurrency has successfully overcome several obstacles since April 2023. He categorized the price movement into three distinct phases, marking the base of the uptrend that sparked the current uptrend.
Currently, van Lagen notes that Bitcoin price action is centered around base 4 of this pattern, indicating a consolidation phase between the $53,700 and $68,000 levels, with the former identified as bull market support for this cycle.
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Van Lagen says wave 4 validation is imminent as Bitcoin nears its all-time high. He predicts that once Bitcoin breaks base 4 and hits a new all-time high, it could trigger a substantial rally into wave 5, potentially targeting prices around $250,000.
However, the analyst also warns of a significant risk slow-down who could follow this surge. He suggests that once Bitcoin hits the predicted high, a “recession” could ensue, with price targets falling as low as $10,000 and, in a more extreme scenario, as low as $1,000. He describes this potential decline as the “upheaval of the century,” if these projections materialize.
In the medium term, the increased volatility that has characterized the price of Bitcoin over the past month has prompted the analyst to explain that if Bitcoin fails to cross the $70,000 mark, resistance level – a barrier it has struggled with in four previous attempts – then the $57,500 level will serve as a crucial support level for the cryptocurrency.
Historical Patterns Suggest Bitcoin Price Will Rise Coming
In another sign of confidence in the prospects for further gains from the largest cryptocurrency, Brett Munster of Blockforce Capital note that conditions are ripe for a “perfect storm” favoring Bitcoin and other cryptocurrencies after six months of price consolidation.
Munster highlighted the role of global liquidity in this potential surge, highlighting increased capital injections of central banks global. China has notably implemented stimulus measures to revitalize its economy.
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Historical data suggests that when global liquidity exceeds its moving average, it often coincides with substantial increases in Bitcoin prices.
Additionally, optimism in the crypto market is further bolstered by US Vice President Kamala Harris’ pledge to support a regulatory framework for cryptocurrencies in response to the crypto community’s long-standing concerns regarding the regulatory environment.
At the time of writing, BTC was trading at $68,300, up 3.6% in the last 24 hours.
Featured image of DALL-E, chart by TradingView.com
