Bitcoin Price Analysis: BTC price signals trend reversal as cash flows to altcoins increase

On-chain data shows that most altcoins, led by Ethereum and XRP, have achieved network growth as Bitcoin traders capitulate.

The cryptocurrency market, led by Bitcoin, is trying to mimic the price action of gold, which has been in the price discovery phase since early February 2024. In the past two weeks, gold prices have risen by more than 11%, hitting an all-time high of about $2,940 per ounce in the past 24 hours.

As a result, retail and institutional investors have rushed to re-allocate their portfolios in preparation for a parabolic rise in cryptocurrencies in the near future. In addition, the mainstream adoption process of digital assets has reached the nation-state level after institutional investors participated in the past few years.

Medium-term Bitcoin Price Expectations

For the past three months, the price of Bitcoin has been in a sideways consolidation channel between $91,000 and $109,000. However, Ali Martinez, a cryptocurrency analyst, pointed out that the price of Bitcoin has been showing bullish momentum in the past few days, which may lead to a trend reversal.

A break above $109,000 would see Bitcoin price rise to the next target of around $144,000, which coincides with the 1.618 monthly Fibonacci extension.

The crypto analyst noted that Bitcoin price must consistently close above the resistance level of around $975,000 to remove the bearish sentiment in the short term. Moreover, the crypto analyst stressed that Bitcoin price has no strong support above $92,000 as a break below $92,000 could result in a drop to $70,000 in the following weeks.

BNBChain Token Leads the Way in Expected Alt Season

Bitcoin price has outperformed most altcoins over the past two years, and now momentum is gradually shifting to layer one (L1) tokens and utility-based tokens. Moreover, on-chain data shows that altcoins, led by Ethereum and XRP, have seen an increase in the number of network users compared to Bitcoin.

According to Santiment’s on-chain data analysis, the total number of non-empty Bitcoin wallets has decreased by more than 277,000 in the past three weeks. As a result, the total number of non-empty Bitcoin wallets has dropped to its lowest level since December 10, 2024.

Over the past 24 hours, crypto tokens based on the BNB chain have seen notable gains compared to the broader market. As Coinspeaker noted, the weekly trading volume of PancakeSwap (CAKE), the largest decentralized exchange (DEX) on the BNB chain, leads its peers at around $20 billion.

As a result, CAKE’s price has more than doubled over the past few days, trading around $2.96 in early New York trading on Thursday, February 16. As of this writing, the mid-cap altcoin has a fully diluted valuation of around $1.1 billion, with its 24-hour average trading volume increasing significantly to around $1.28 billion.