SOL / BTC

Benjamin Cowen

Introduction to Solana and Bitcoin Valuation

The discussion focuses on Solana's Bitcoin valuation, comparing its pattern to that of ETH Bitcoin. A previous video mentioned Solana following a specific pattern, which seems to be unfolding as predicted.

Historical Pattern Comparison

  • ETH Bitcoin Pattern: Had a higher low structure that held as support before breaking down, then broke back up, and eventually bled down over a multi-year process.
  • Solana's Pattern: Similar to ETH Bitcoin, with a 90% drop followed by a significant rally. The structure includes a distribution phase, a higher low structure, a breakdown, and then a bounce back up.

Key Differences and Similarities

  • Drop and Rally: Solana had a 90% drop and a 573% move up, whereas ETH Bitcoin had a similar drop but only a 450% rally.
  • Breakdown and Bounce: Both cryptocurrencies broke down from their higher low structures and then bounced back up, but Solana did not sweep its low as ETH Bitcoin did.

Future Outlook

  • For Solana to deviate from ETH Bitcoin's path, it needs to take out its current high. If it can't, it may follow a similar trajectory.
  • The main resistance level for Solana is around 31,000 satoshis. Clearing this level could indicate a deviation from ETH Bitcoin's pattern.

Conclusion

The Bitcoin valuation of altcoins, like Solana, is crucial for understanding their long-term performance. While Solana shows similarities to ETH Bitcoin, its ability to clear key resistance levels will determine if it deviates from the predicted pattern.