The largest cryptocurrency in the world, Bitcoin (quotation BTC), posted solid gains on Wednesday, Feb. 15, gaining over 12% and approaching $25.000. As of press time, BTC is trading up 8,11% with a price tag of $24.597 and a market cap of $474 billion.
Over the past 24 hours, Bitcoin and altcoins have added more than $100 billion to investor wealth. According to on-chain indicators, Bitcoin is likely to outperform Ethereum this year. Pseudonymous cryptocurrency analyst KALEO tweeted to his 562.000 followers that the Ethereum/Bitcoin (ETH/BTC) pair is now trading below a diagonal trendline. Therefore, ETH is likely to rank below Bitcoin in terms of gains. KALEO wrote:
ETH/BTC has finally broken below the high timeframe support line we have been observing. Remember, this chart only shows relative strength versus BTC, so expect to see BTC start to outgrow a bit more quickly over the next few weeks.
Also, when we look at yesterday's rally, Bitcoin has outperformed all other altcoins in percentage terms. While the price of BTC is up 12%, top tier altcoins have gained between 7 and 10%. Data provider on the chain, Santiment, noted that as altcoins retreat, the whales and trading volumes could shift to Bitcoin. He noted that:
Bitcoin surged to $22,9k, and saw a nice one-off price rally about 6 hours ago that pushed it ahead of most altcoins. January was the time of the alt recoveries, so keep an eye out for the whales and trading volumes moving into $BTC.
Is Bitcoin Ready to Hit $56.000?
At present, Bitcoin has gained more than 50% this year in 2023. Some market analysts believe that the BTC price could gain another 100% from current levels. In a statement released to cryptocurrency publication CoinDesk, William Noble, director of research at Emerging Assets Group, said that:
“Bitcoin is coming out of a long baseline. There is a saying that the bigger the base, the higher the space. Bitcoin could go from consolidation to another parabolic move towards $56.000.”
In December 2020, Noble accurately predicted Bitcoin's surge from $20.000 to $40.000. Another confirmation of the end of Bitcoin's downtrend is the widely watched momentum indicator, the Relative Strength Index (RSI), which has diverged bullishly on the weekly chart.
Other than that, we know that Bitcoin has a close correlation with the Nasdaq technology index. Recently, the Nasdaq also made a breakout from the bull flag. A bullish flag forms after a correction following an uptrend. The breakout of the bull flag is an indicator of the resumption of the broader uptrend.
Noble added: “There is a bull flag in the Nasdaq. A saying goes, 'flags fly at half-mast', which means there could be another major bull run in equities to a new all-time high.'