Bitcoin heads towards $56,000 and poised to surpass Ethereum in the coming weeks

• The recent market rally sees Bitcoin making stronger gains against altcoins as whale sentiment and trading volumes shift to BTC.
• With Bitcoin’s recent breakout and Nasdaq correlation, analysts expect the BTC price to touch $56,000 this year.

The world’s largest cryptocurrency Bitcoin (BTC) recorded solid gains on Wednesday, February 15, rising more than 12% to approach $25,000. As of press time, BTC is trading 8.11% up at a price of $24,597 and a market cap of $474 billion.

Over the past 24 hours, Bitcoin and altcoins combined have added more than $100 billion to investors’ wealth. According to on-chain indicators, Bitcoin is likely to surpass Ethereum this year. Pseudonymous cryptoanalyst KALEO tweeted to his 562K followers that the Ethereum/Bitcoin pair (ETH/BTC) is now trading below a diagonal trendline. Thus, ETH is likely to follow Bitcoin in terms of gains. CALEO wrote:

ETH/BTC finally broke below the high timeframe support line we’ve been looking at. Keep in mind that this chart only shows relative strength to BTC, so expect to see BTC start to outperform a little faster sometime in the next few weeks.

Courtesy: KALEO

Also if we see yesterday’s pump, Bitcoin has outperformed all other altcoins percentage wise. While the BTC price appeared by 12%, the top level altcoins increased somewhere in the range of 7-10%. On-chain data provider Santiment noted that when altcoins fall behind, whales and trading volumes may shift to Bitcoin. It noted:

Bitcoin is up to $22.9k and it saw a nice isolated price pump about 6 hours ago that pushed it ahead of most altcoin package. January was the time for everything extractions, so keep an eye out for whales and trade volume shifting to $BTC.

Politeness: Sentiment

Bitcoin Poised To Increase To $56,000?

As of now, Bitcoin has also given more than 50% gain this year in 2023 so far. Some market analysts believe that the BTC price could gain another 100% from current levels. Speaking to crypto publication CoinDesk, William Noble, director of research at Emerging Assets Group, said:

“Bitcoin is breaking out of a long base formation. There is a saying that the bigger the base, the higher the space. Bitcoin could go from consolidation to another parabolic move back to $56,000”.

Back in December 2020, Noble had accurately predicted Bitcoin’s rise from $20,000 to $40,000. Another confirmation of the end of Bitcoin’s downtrend is the widely tracked momentum indicator Relative Strength Index (RSI) which has diverged bullish on the weekly chart.

Apart from this, we know that Bitcoin shares a close correlation with the tech-heavy Nasdaq index. Recently, the Nasdaq also issued a breakout from the bull flag. A bull flag pattern after a correction follows an uptrend. A breakout from the bull flag is an indicator of a resumption in the broader uptrend.

Noble added: “In the Nasdaq, there is a bull flag. There is a saying that says ‘flags are flying at half-mast,’ which means there could be another big rally in stocks to a new all-time high.”

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