Caleb Franzen of Cubic Analytics appeared on the Thinking Crypto podcast and opened up about the market trends and altcoins

Bitcoin is currently in an impressive position, having broken above key resistance levels. On the weekly chart, the trend looks strong, and the daily chart confirms a healthy retracement that could establish new support. After months of consolidation, Bitcoin's momentum is gaining traction, and we're keenly watching these movements across different time frames.

Bitcoin’s strong performance is having a ripple effect on the broader crypto market. As the leading digital asset continues to rally, other cryptocurrencies are rallying in its wake. However, one cryptocurrency that is outperforming Bitcoin is Solana.

Solana has been on a tear lately, setting new all-time highs and outpacing the gains of other major cryptocurrencies. This performance is prompting some traders to question whether their investments in other cryptocurrencies, such as Bitcoin, will be able to keep up.

One trader who is closely watching the market trends is Caleb Franzen of Cubic Analytics. In a recent appearance on the Thinking Crypto podcast, Franzen discussed the recent breakout in Solana and explained why he is bullish on the altcoin.

“Solana is setting out new all-time highs and making new highs against Ethereum,” said Franzen. “This setup is very similar to what we saw in Bitcoin earlier this year. Everyone was waiting for Bitcoin to break out, and it did so around the 200-day moving average. We saw a clear breakout in Bitcoin there, and now we are seeing the same thing in Solana.”

Franzen noted that Solana is emerging as a standout performer in the current bull market, especially as Ethereum, the second-largest cryptocurrency, continues to struggle. This shift in momentum is indicating that Solana is taking the lead in altcoin flows.

“Solana is outperforming Bitcoin right now, and this is showing that altcoins are starting to flow into Solana,” said Franzen. “We are seeing a clear outperformance in Solana, and this is something that we are waiting to see continue.”

The analyst also highlighted the importance of the 200-day moving average cloud as a dynamic indicator of market health. He explained that trading above this cloud suggests a bull market, while trading below indicates weakness.

“We are waiting for a close above around $232 billion in altcoin market cap, excluding the top 10,” said Franzen. “If the market closes above the 200-day moving average, we will be considering a long position in Solana, and we anticipate a potential upside of 30% for Solana.”

However, Franzen noted that while Solana is outperforming Ethereum right now, that doesn’t necessarily mean that Ethereum won’t move. He added that traders should be aware of the potential for slower upside movement in Bitcoin, which could impact the gains of other cryptocurrencies.

“We are not being negative on Ethereum itself; we are just more optimistic about Solana,” said Franzen. “We are waiting to see how this plays out, and we believe that traders should be considering the potential for slower upside performance in Bitcoin, which could affect the gains of other cryptocurrencies.”

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