As the week progressed, the price of Bitcoin (BTC) steadily rose towards its all-time high of $73,700 in March of this year. This upward momentum is in line with the predictions from several 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 into Bitcoin’s price trajectory via social media platform X (formerly Twitter). He analyzed BTC’s parabolic curve and identified a distinct step-shaped formation pattern, which he believes signals a colossal wave 5 rally in the coming months.
Potential to ‘shake the century’
In your 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 basis of the uptrend pattern that triggered 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.
Related Reading
Van Lagen claims that validation of Wave 4 is imminent as Bitcoin approaches its record peak. He predicts that once Bitcoin breaks through base 4 and reaches a new all-time high, it could trigger a substantial rally in wave 5, potentially targeting prices around $250,000.
However, the analyst also warns of a significant deceleration that may follow this increase. He suggests that when Bitcoin reaches its predicted peak, a “recession” could occur, 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 “shake of the century” if these projections come to fruition.
In the medium term, the increase in volatility that has characterized the price of Bitcoin over the last month has led the analyst to explain that if Bitcoin fails to surpass US$70,000. resistance level – a barrier it has struggled against in four previous attempts – so the $57,500 level will serve as a crucial support level for the cryptocurrency.
Historical Patterns Suggest Bitcoin Price Rises in the Future
In another sign of confidence in the largest cryptocurrency’s prospects for further gains, Blockforce Capital’s Brett Munster observed 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 increase, pointing to increased capital injections from central banks worldwide. Notably, China implemented stimulus measures to revitalize its economy.
Related Reading
Historical data suggests that when global liquidity surpasses its moving average, it often coincides with substantial Bitcoin price increases.
Additionally, optimism in the crypto market is further bolstered by US Vice President Kamala Harris’ commitment 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 is trading at $68,300, increase of 3.6% in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com