Aave and Chainlink hit new highs as Bitcoin’s price struggled to hold $ 32K

Bitcoin’s (BTC) price opened the weekend tightly within the $ 33,500 to $ 32,000 range but at the time of writing this report the digital asset is struggling to hold above $ 32,000.

A few analysts have warned that a recent loss of price momentum could signal ‘institutional fatigue’ as sales pressure from Asia has increased since January 19.

Despite Bitcoin’s current downturn, some institutional investors are sticking to their prediction that the BTC price will reach $ 100,000 before the end of 2021. This suggests that institutions are buoyed by rising investor sentiment and the new proposals for the Bitcoin ETF .

BTC / USDT 4 hour chart. Source: TradingView

While Bitcoin is still facing resistance around the $ 33,000 level, on-chain analyst Willy Woo sees one potentially positive development for BTC. Woo He 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, has a “touch”.

According to Woo it was:

“Replace full chain SOPR. Coins moving between hourly investors (24h MA) no longer carry an average profit. To push SOPR down, investors would have to be prepared to sell at a loss. ”

Bitcoin-modified SOPR. Source: Glassnode

Woo also suggested that investors are less likely to sell at a loss, an early signal that Bitcoin may be close to finding a bottom.

Altcoins and DeFi tokens are soaring

DeFi tokens and altcoins continued to forge their own path as Bitcoin searched for support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) all increased by about 5% to 7%.

The surge in the price of many DeFi-related tickets has largely occurred as a result of increased DEX activity. Data from Dune Analytics shows that monthly DEX volumes have increased since July 2020 and currently the total locked value at DeFi is $ 23.89 billion.

Monthly DEX volume by project. Source: Dune Analytics

Chainlink (LINK) continued its strong rally, always setting a new peak at $ 25.50 and surpassing Litecoin (LTC) in total market cap to become the seventh largest project listed on CoinMarketCap. The price of Aave also broke into a new all-time high at $ 229.39 and the total value locked in the platform is $ 3.44 billion.

The overall cap of the cryptocurrency market is now $ 936.8 billion and Bitcoin’s dominance rate is 63.5%.