- A highly respected crypto analyst predicts that a significant Ethereum (ETH) competitor is on the verge of a major breakout.
- Jamie Coutts, the chief crypto analyst at Real Vision, notes that Solana (SOL) is showing a bullish trend against Bitcoin (BTC).
- “Solana’s relative strength is quite impressive. After a period of consolidation against Bitcoin, a breakout seems imminent,” says Coutts.
Discover why Solana (SOL) is poised for a massive breakout compared to Bitcoin (BTC) and explore the key metrics hinting at Bitcoin’s next move.
Solana Ready for Breakout Against Bitcoin
According to Jamie Coutts, Solana (SOL) is exhibiting a positive technical pattern against Bitcoin (BTC), highlighted by the simple moving average (SMA) crossover on the daily chart. This pattern may indicate a strong bullish phase for Solana. A notable crossover of the shorter-term SMA over the longer-term SMA historically signals potential rallies. Currently, the SOL/BTC pair is traded at 0.002663 BTC ($172), which shows a slight decline of more than 1.7% in the past 24 hours.
Analyzing Bitcoin’s Potential Upside Move
Coutts further elaborates that certain crucial metrics are pointing towards a possible upside for Bitcoin. A significant rise in open interest, the total number of outstanding derivatives contracts, suggests increased investor confidence. With open interest hitting new all-time highs, yet funding remaining positive/neutral (seven-day average annualized at 8.7%), Bitcoin appears to be on the brink of a breakout. He emphasizes the balanced aggregate positioning as a key factor.
Bitcoin’s Hash Rate: A Bullish Indicator
Another critical metric highlighted by Coutts is Bitcoin’s hash rate, which serves as a fundamental measure of the network’s health. The recent crossover between the 30-day and 90-day SMA of the hash rate is a bullish indicator. Historically, this crossover has proven to be a reliable signal with a 67% win record and a profit factor of 2.18. The interconnectedness of the hash rate and Bitcoin price suggests that a rising hash rate often correlates with a higher Bitcoin price. At the moment, Bitcoin is trading at $64,722, slightly down by over 2% in the last 24 hours.
Conclusion
In summary, both Solana and Bitcoin are exhibiting signs of potential upward movement based on key technical indicators. For Solana, the SMA crossover suggests a breakout against Bitcoin, while Bitcoin’s increasing open interest and hash rate further reinforce the bullish outlook. Investors should keep a close watch on these metrics, as they provide valuable insights into the future price actions of both cryptocurrencies.
