Solana might be on the cusp of a major rally against Bitcoin. That's the view of Jamie Coutts, chief crypto analyst at Real Vision.
Coutts points to a bullish pattern in the Solana-Bitcoin pair. He bases this on a simple moving average crossover on the daily chart.
"Solana's relative strength is quite something," Coutts tweeted. "After consolidating against king Bitcoin, it looks like a breakout is on the horizon."
The analyst shared a chart to back up his claim. It suggests the SOL/BTC pair is entering an uptrend.
This comes after a shorter-term SMA crossed a longer-term one. Such crossovers have signaled rallies in the past.
At the time of writing, SOL/BTC trades at 0.002663 BTC ($172). It's down 1.7% in the last 24 hours.
Coutts isn't just bullish on Solana. He reckons Bitcoin is gearing up for a move higher too.
He cites rising open interest as one key metric. Open interest refers to the total number of outstanding derivatives contracts for an asset.
"Open interest at new all-time highs, but funding is positive/neutral," Coutts noted. "Bitcoin is attempting to break out, and this time aggregate positioning is more balanced."
The analyst also highlighted Bitcoin's hash rate as a bullish signal. The 30-day SMA has crossed the 90-day SMA.
"Bitcoin hash rate recovery is one of the best signals for network health," Coutts explained. He added that a simple moving average cross strategy has a 67% win record.
Coutts admits that holding Bitcoin outperforms this strategy. But he reckons it can be a useful risk management tool for cautious investors.
"When you regress hash rate and price, it's clear they are very interdependent," he said. "A growing hash rate says BTC is going higher."
It's worth noting that while Coutts' analysis is intriguing, crypto markets are notoriously unpredictable. Investors should always do their own research and consider their risk tolerance before making any moves.