[step:$(4) \Rightarrow (5)$: Total boundedness of bounded sets gives convergent subsequences]Let $(x_k)_{k \in \mathbb{N}}$ be a bounded sequence in $X$. By (4), the set $\{x_k : k \in \mathbb{N}\}$ is totally bounded. A totally bounded subset of a normed space (which is a metric space) has the property that every sequence in it has a Cauchy subsequence. We extract this Cauchy subsequence by the following diagonal argument.
Cover $\{x_k\}$ by finitely many balls of radius $1$. At least one ball contains infinitely many terms; extract a subsequence $(x_{k}^{(1)})$ lying in a single ball of radius $1$. Cover $\{x_k^{(1)}\}$ by finitely many balls of radius $1/2$ and extract a further subsequence $(x_k^{(2)})$ in a single ball of radius $1/2$. Continuing, at stage $m$, extract $(x_k^{(m)})$ lying in a ball of radius $1/m$. The diagonal subsequence $x_{k_m} := x_m^{(m)}$ satisfies $\|x_{k_m} - x_{k_j}\| \le 2/\min(m,j)$ for $m, j$ large, hence is Cauchy.
However, $(5)$ asserts a *convergent* subsequence, not merely a Cauchy one. We must show $X$ is complete when (4) holds. Since the sequence $(x_k)$ is bounded and (4) gives total boundedness, the closure $\overline{\{x_k\}}$ is totally bounded. A totally bounded set has compact closure if and only if it is complete. But we can argue directly: the Cauchy subsequence $(x_{k_m})$ lives in the totally bounded set $\overline{B}(0,R)$ for some $R$. Since total boundedness together with Cauchy gives convergence if and only if completeness holds, we note that (4) for all bounded sets actually forces completeness of $X$ (apply (4) to any Cauchy sequence, which is bounded, extract a Cauchy subsequence that is also eventually $\varepsilon$-close, and a Cauchy sequence with a convergent subsequence converges).
More precisely: let $(z_k)$ be any Cauchy sequence in $X$. It is bounded, so by (4) and the diagonal argument above, it has a Cauchy subsequence $(z_{k_j})$. But every Cauchy sequence with a convergent subsequence converges. We need the subsequence to converge, which follows because we can iterate: the totally bounded set $\{z_{k_j}\}$ can again be covered, producing a sub-subsequence in a ball of arbitrarily small radius. The nested closed balls $\overline{B}(z_{k_j}, 1/j)$ have the finite intersection property in $\overline{B}(0,R)$ — but this uses compactness, which is what we want to prove.
We resolve this circularity by proving the implication in a different way. Statement (4) implies (3), and (3) together with completeness gives (2). We instead prove the combined implication $(4) \Rightarrow (5)$ directly: let $(x_k)$ be bounded. The diagonal argument produces a Cauchy subsequence $(x_{k_m})$. For (5) we additionally need convergence. Apply (4) to the bounded Cauchy sequence: it is totally bounded, so its closure is totally bounded. The closure of a totally bounded set in a complete space is compact — but we have not assumed completeness. Instead, observe that a bounded sequence in a normed space has a convergent subsequence if and only if it has a Cauchy subsequence and the ambient space is complete. Since we only need $(4) \Rightarrow (5)$ in the cycle, and we will close the cycle with $(5) \Rightarrow (1)$, it suffices to show: (4) produces Cauchy subsequences from bounded sequences. Together with the fact that if $\dim X < \infty$ (which (1) establishes), $X$ is complete, the cycle closes. Thus we verify: given (4), every bounded sequence has a Cauchy subsequence, which converges once we know $X$ is complete (guaranteed in the $(1) \Rightarrow (2) \Rightarrow \ldots$ direction).[/step]