A prominent cryptocurrency analyst believes that one competitor to Ethereum (ETH) is looking for a massive breakthrough.
Jamie Coutts, senior cryptocurrency analyst at Real Vision, said that Solana (SOL) is showing a bullish pattern against Bitcoin (BTC) based on the simple moving average (SMA) crossover on the daily chart.
“Solana’s relative strength is truly remarkable. After integrating against the king of Bitcoin, a breakthrough seems imminent.”
The analyst shared a chart suggesting that SOL/BTC entered an uptrend after the short-term SMA crossed the long-term SMA, which has been a sign of a rally in the past.
At the time of writing, SOL/BTC is trading at 0.002663 BTC ($172), down over 1.7% in the last 24 hours.
The analyst then said that key indicators show that Bitcoin is on the uptrend, including an increase in open interest, or the total number of open derivatives contracts for a particular asset.
“Open interest at new all-time highs (ATH), but funding is positive/neutral (7-day average 8.7% ytd). Bitcoin is attempting a breakout, and this time the aggregate positioning is more balanced.”
He also said that Bitcoin hashrate is showing strength as the 30-day SMA crosses the 90-day SMA.
“The Bitcoin hash rate recovery is one of the best signals for network health. A simple 30-day and 90-day moving average crossover produces: a 67% winning record, a profit coefficient of 2.18, a Sharpe ratio of 1.88, and a Sortino ratio of 2.64.
HODL may outperform this strategy, but it can be an effective risk management tool for prudent investors. If we regress the hash rate and price, it becomes clear that they are highly interdependent. A higher hash rate means higher BTC.”
At the time of writing, Bitcoin is trading at $64,722, down more than 2% over the last 24 hours.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investment in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are your responsibility and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and The Daily Hodl is not an investment advisor. The Daily Hodl participates in affiliate marketing.
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