In the cryptocurrency world, closely followed analyst Jamie Coutts suggested that Solana (SOL), a competitor to Ethereum (ETH), is preparing for a major surge. Coutts also indicated that the largest cryptocurrency, Bitcoin (BTC), is getting ready for an upward move.
Predicts Major Rally for Solana
Coutts, the chief cryptocurrency analyst at Real Vision, stated that Solana is giving bullish signals based on a simple moving average (SMA) crossover against Bitcoin.
Coutts noted that the short-term SMA has crossed the long-term SMA on the daily chart, which has triggered rallies in the past. The analyst emphasized that Solana is in a consolidation period against Bitcoin and is now on the verge of a breakout. The SOL/BTC trading pair is currently trading at 0.002663 BTC (approximately $172) and has lost more than 1.7% in the last 24 hours.
Believes Bitcoin is Also Preparing for an Upward Move
On the other hand, Coutts highlighted key metrics indicating that Bitcoin is preparing for an upward move. He particularly emphasized the increase in the number of open positions (the total number of outstanding derivative contracts for a specific asset). The analyst stated, “The number of open positions is at new all-time highs, but the funding rate is positive/neutral (seven-day annualized average of 8.7%). Bitcoin is attempting a breakout, and this time the collective positioning appears more balanced.”
Additionally, he noted that Bitcoin’s hash rate is giving bullish signals, with the 30-day SMA crossing the 90-day SMA. Commenting on the hash rate, Coutts said, “The recovery in Bitcoin’s hash rate is one of the best signals for network health. A simple 30- and 90-day moving average crossover produces a 67% win rate, a 2.18 profit factor, a 1.88 Sharpe ratio, and a 2.64 Sortino ratio. HODL outperforms this strategy but can be an effective risk management tool for cautious investors. When you regress hash rate and price, it is clear that they are highly correlated. The increasing hash rate indicates that BTC is on the rise.”
At the time of writing, BTC is trading at $64,376, up 0.29% in the last 24 hours.
