A popular crypto analyst is looking for Bitcoin (BTC) to break to the upside while analyzing the strength of Solana (SOL) after the layer-1 blockchain protocol’s rough start to 2022.
In a new strategy session, the host of financial education YouTube channel InvestAnswers shows his 411,000 subscribers a Bitcoin chart highlighting a recent inverse head-and-shoulders pattern.
According to the analyst, the pattern indicates an impending major market reversal.
“For those classic TA [technical analysis] people, we just had a classic inverse head-and-shoulders. If you flip it upside down, that’s a head-and-shoulders.
Typically it is inverted with the top is used to predict reversals in downtrends, and that’s what this is for. It is a bullish sign.
The pattern is identified when the price action of Bitcoin or any other asset has those characteristics.”
The analyst says that while technical analysis isn’t a necessarily hard science, he remains optimistic about BTC’s future price action.
“Typically the price falls again after the second trough and then it bounces. We’re in that bounce phase and we’ll see where we go.
This is another bullish TA sign. But we all know that TA is astrology for grown men. We don’t know if it’s going to hold, but very, very bullish.”
Bitcoin is trading even at time of writing at $44,063. It’s held the $40,000 level for 12 days in a row.
Moving on to the Ethereum (ETH) competitor Solana, the InvestAnswers host digs into SOL’s relative strength index (RSI). The metric analyzes a crypto asset’s candle oscillation over 14 periods, and in the current chart, he’s examining SOL in terms of weeks.
“If we look at the weekly chart on Solana, the RSI is at its low point. Only achieved twice in history on the weekly, so that also tells us Solana is very oversold even at this $100-level.
We’ll watch that carefully as well. The trend has been kind of down but it might just turn around real soon.”
Solana is currently down a percent to $102.47. It began the year valued at $173.62 before tumbling 51.6% to a low of $84.07 on January 24th before grinding out a choppy recovery to current levels.
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Featured Image: Shutterstock/Tithi Luadthong