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 of several market experts, who expect significant gains for the leading cryptocurrency by the end of the year.
One such expert, cryptocurrency analyst Gert van Lagen, recently shared his views on Bitcoin’s price trajectory on social media platform X (formerly Twitter).
He analyzed BTC’s parabolic curve and identified a distinct stair-step formation pattern, which he believes signals a colossal wave 5 rally in the coming months.
In his analysis, van Lagen presented a Bitcoin chart demonstrating that the cryptocurrency has successfully overcome several hurdles since April 2023.
He categorized the price movement into three distinct phases, marking the base of the bullish pattern that initiated the current uptrend.
Currently, van Lagen notes that Bitcoin's price action is centered on the 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.
Van Lagen claims that validation of Wave 4 is imminent as Bitcoin approaches its record peak.
He predicts that once Bitcoin breaks out of 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 drop that could occur after this increase.
He suggests that once Bitcoin reaches the anticipated peak, a “recession” could occur, with price targets plummeting to as low as $30,000, and in a more extreme scenario, as low as $18,000.
He describes this potential decline as the “shake-out of the century” if these projections come true.
In the medium term, the increased volatility that has characterized the price of Bitcoin over the last month has led the analyst to explain that if Bitcoin fails to break the $70,000 resistance – a barrier it has struggled with in four previous attempts – then the $57,500 will serve as a crucial support level for the cryptocurrency.
In another sign of confidence in the prospects for further gains from the largest cryptocurrency, Brett Munster of Blockforce Capital noted that conditions are ripe for a “perfect storm” favorable to Bitcoin and other cryptocurrencies after six months of price consolidation.
Munster highlighted the role of global liquidity in this potential surge, pointing to increased capital injections by central banks around the world.
Notably, China has implemented stimulus measures to revitalize its economy.
Historical data suggests that when global liquidity surpasses its moving average, it often coincides with substantial Bitcoin price increases.
Furthermore, optimism in the cryptocurrency market is further bolstered by a commitment from US Vice President Kamala Harris to support a regulatory framework for cryptocurrencies in response to long-standing concerns from the crypto community about the regulatory environment.
At the time of writing, BTC was trading at $68,300, up 3.6% over the past 24 hours.
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