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The price of Bitcoin (BTC) opened over the weekend stuck between $ 33,500 and $ 32,000, but at the time of writing, the digital asset is struggling to maintain above $ 32,000.
A few analysts have warned that the recent loss of price momentum could be a sign of “ institutional exhaustion ” as pressure to sell Asia has increased since January 19.
Despite Bitcoin’s current downtrend, some institutional investors are sticking to their prediction that the price of BTC will hit $ 100,000 before the end of 2021. This suggests that institutions are being supported by the rise in investor sentiment and the news. proposals for a Bitcoin ETF.
While Bitcoin still faces resistance around the $ 33,000 level, on-chain analyst Willy Woo sees potentially positive development for BTC. Courting said that the Bitcoin Spent Output Profit Ratio (SOPR), a metric that shows BTC’s profit ratio by dividing the price sold by the price paid, had “a hit.”
According to Woo, there was a:
“Complete reset of the SOPR on the line. The coins circulating between investors per hour (24h MA) no longer bring in profit on average. To lower the SOPR, investors should be prepared to sell at a loss. “
Woo also suggested that investors are less likely to sell at a loss, an early signal that Bitcoin may be on the verge of bottoming.
Altcoins and DeFi tokens are on the rise
DeFi tokens and altcoins continued to make their way as Bitcoin sought support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) all advanced around 5% to 7%.
The surge in the price of many DeFi-related tokens was largely the result of increased DEX activity. Data from Dune Analytics shows that DEX’s monthly volumes have increased since July 2020 and currently the total value locked in in DeFi is $ 23.89 billion.
Chainlink (LINK) continued its strong rally, setting a new all-time high at $ 25.50 and surpassing Litecoin (LTC) in terms of total market capitalization to become the seventh largest project listed on CoinMarketCap. The Aave price also hit a new all-time high at $ 229.39 and the total value locked in the platform is $ 3.44 billion.
The overall cryptocurrency market cap now stands at $ 936.8 billion, and Bitcoin’s dominance rate is 63.5%.
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