Bitcoin to head to $56,000 and primed to outperform Ethereum in the coming weeks

• The recent market rally sees Bitcoin posing stronger gains over altcoins as Whale sentiment and trading volumes shift to BTC.
• With Bitcoin’s recent breakout and Nasdaq correlation, analysts are expecting the BTC price to touch $56,000 this year.

The world’s largest cryptocurrency Bitcoin (BTC) registered solid gains on Wednesday, February 15, gaining more than 12% and inching closer to $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 last 24 hours, Bitcoin and altcoins together have added more than $100 billion to investors’ wealth. As per on-chain indicators, Bitcoin is likely to outperform Ethereum ahead this year. Pseudonymous crypto analyst 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 trail Bitcoin in terms of gains. KALEO wrote:

ETH/BTC finally broke beneath the high timeframe support line we’ve been watching. Remember, this chart only shows relative strength to BTC, so expect to see BTC begin to outpace a bit more rapidly sometime over the next several weeks.

Courtesy: KALEO

Also if we see yesterday’s pump, Bitcoin has outperformed all other altcoins in percentage terms. While the BTC price popped up by 12%, the top-tier altcoins gained somewhere in the range of 7-10%. On-chain data provider Santiment noted that as altcoins fall behind, whales and trading volumes could shift over to Bitcoin. It noted:

Bitcoin is up to $22.9k, and it saw a nice isolated price pump approximately 6 hours ago that pushed it ahead of most of the altcoin pack. January was the time of alt recoveries, so keep an eye on whales & trading volume shifting over to $BTC.

Courtesy: Santiment

Bitcoin Primed to Rally to $56,000?

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

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

Back in December 2020, Noble had accurately predicted Bitcoin’s surge 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) that has diverged bullishly on the weekly chart.

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

Noble added: “In Nasdaq, there is a bull flag. There is a saying, ‘flags fly at half-mast,’ meaning there could be another major run higher in equities to a new all-time high”.

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