As Bitcoin remains in holding mode between $25,300 and $26,500 I think it may be a good time to look at other cryptos this week, with the hope of gauging possible clues as to which way the market is going to break.
Many heavyweight on-chain metrics recorded large price spikes earlier this month around $29,000 signaling that a big move was coming for BTC.
These on-chain spikes include, but are not limited to, moves in Token Age Consumed, Network Profit and Loss, and of course Dormant Coin Activity.
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At the same time, we have recently seen many positive on-chain signs emerge around $26,000, (as highlighted in my daily articles), however, lift-off has not yet commenced.
Ethereum has been quietly showing some very encouraging signals while remaining extremely quiet in terms of price action and recovery.
For example, the transfer from retail holders of ETH to whales has been stepping up during the decline this month.
We have also seen an encouraging increase in Positive DAA Price flows over the past week or so, which has been consistent with the start of major price rallies.
Last, but not least, we have also seen a major increase in trading volume for Ethereum.
This could well indicate that the next move in ETH will be trend defining and substantial.
To give a more balanced picture, XRP, a coin that arguably can be used as a technical proxy for the market and also for sentiment, is not yet showing signs of a bottom.
Starting with sentiment, and post-SEC news, a massive spike in positivity towards Ripple delivered the death nail right around the highs of the year as traders became too overexcited.
Also, in reference to XRP being a technical proxy, check out the undeniable test and subsequent failure of multi-year trendline resistance.
The lack of on-chain spikes in Token Age Consumed and Volume suggest XRP is still stuck in the doldrums, and a major top formed around the highs of the year.
Arguably, recent large spikes in 90-day coin activity and positive DAA divergence up to 0.6500 cents could suggest a solid upmove is coming.
Bitcoin Cash, a largely BTC sentiment-linked coin, is showing large amounts of positive DAA divergence up to $238.00.
But aside from that, on-chain metrics do not indicate much else than a temporary bounce for BCH at present.
Overall, some solid on-chain evidence suggests a minor bounce could certainly happen in altcoins. This could correlate well with Bitcoin testing $27,000 or $27,500 again.
But beyond a minor bounce, a recovery to new highs still appears a long shot without substantial bullish news.
