The Bull-Bear Tug-of-War

Chart of the Day

BTC did not enjoy a good start to the week at all, as Monday saw the largest cryptocurrency by market cap retrace to the lower bound of the $42k territory to hit a local low near the $41.5k level. Thankfully, BTC has since bounced back to the $42.2k range where it is currently trading at (as of the time of writing). In a similar vein, most major altcoins are also currently in the red, with the exception of some notable performers like Cardano's ADA. ADA has posted nearly 40% gains in the past week on the back of some strong upside momentum fueled by the imminent launch of SundaeSwap, the first decentralized exchange (DEX) on the Cardano Network.

Unfortunately, ADA notwithstanding, the larger crypto market is unlikely to experience or witness any market-moving events anytime soon, as on-chain metrics reveal an ongoing tug-of-war between bullish and bearish signals. Presently, around 40% of BTC's Realized Cap can be seen to be held in coins that are less than 3 months old. Within this age band, it can be further observed that the younger coins are on a net decline, suggesting that these younger coins are actually maturating into older age bands. Historically, whenever coins older than 3 months are being spent, a bottom will generally be observed, as said spending typically causes an additional influx of liquidity that must be absorbed by the larger market.