Bitcoin (BTC) Price Prediction: Will History Repeat Itself as BTC Prepares For A 5X Surge?

Bitcoin traders might be upbeat about what lies ahead. However, looking at the daily chart, the world's most valuable coin is struggling for momentum.

Bitcoin (BTC) traders are optimistic about the future, but the daily chart shows the coin struggling for momentum. Prices are trading within a narrow range, with support at around $56,000 and a stubborn liquidation level at $63,000.

The uptrend remains, at least considering the state of price action in the past few trading days, but conservative and risk-on traders are now on the sidelines.

It is only when there is a clear trend definition, either below $50,000 or above $72,000, that traders can commit. The result will be an uptick in trading volume, currently muted and way below the averages recorded on August 8.

One analyst, in a post on X, thinks Bitcoin could be preparing for a major leg up in the coming sessions. Notably, the confident trader compares the current state of affairs to events of 2020 when the global economy came to a standstill due to the COVID-19 pandemic.

Governments had to intervene through lockdown and interest rate cuts, which fell to multi-year lows in the United States and globally.

The analyst says that, at spot rates, Bitcoin is precisely where it was in September 2020. Though prices temporarily fluctuated, it only took five short months for prices to expand from $10,500 to over $56,000.

Even though history may not repeat itself as it did in 2020, it can rhyme. Therefore, there is nothing, considering the current market conditions, that may prevent prices from rallying, even surging by 5X.

At the time of writing, BTC prices are up marginally on the day, trading just above $60,000. The coin has lost about 12% in the past month from highs above $68,000, but the uptrend remains intact.

To the upside, BTC faces immediate resistance at $63,000, where a stubborn liquidation level could cap gains. Past this point, the coin has another wall of sell orders at $72,000, which could slow down the uptrend.

On the lower timeframes, BTC appears to be forming a descending triangle pattern, which is usually bearish. However, the coin has been trading within the pattern for the best part of two months now, suggesting that the bears are struggling to gain control.

If the bears do manage to push prices below the triangle support, then BTC could fall towards $42,000-$45,000, where the coin has strong support from the 200-day moving average and a descending trendline from the May highs.

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