Bitcoin (BTC) price opened the weekend stuck within the $33,500 to $32,000 range but at the time of writing the crypto currency is struggling to stay above $32,000.
A few analysts have cautioned that the recent price loss of traction could be an indication of ‘institutional fatigue’ as sales demand from Asia has risen since January 19.
Despite the recent downtrend in Bitcoin, some institutional investors are sticking to their forecast that the BTC price will hit $100,000 by the end of 2021. This indicates that institutions are driven by increasing market sentiment and new ideas for the Bitcoin ETF.
Though Bitcoin still faces resistance at about $33,000, on-chain analyst Willy Woo sees one potentially promising trend for BTC. Woo said that the Bitcoin Expended Production Profit Ratio (SOPR), a calculation that indicates the profit ratio of BTC by dividing the price sold by the price charged, had a “touchdown” effect.
According to Woo there was a:
“Full on-chain SOPR reset. Coins moving between investors per hour (24h MA) no longer carry profit on average. To push SOPR lower, investors would have to be willing to sell at a loss.”
Woo also suggested that investors are less likely to sell at a loss, an early signal that Bitcoin could be close to finding a bottom.
Altcoins and DeFi tokens soar
DeFi tokens and altcoins began to forge their own course as Bitcoin found help. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) were all between 5% to 7%.
A major part of the spike in the price of many DeFi-related tokens was the result of an increase in DEX activity. Data from Dune Analytics reveals that monthly DEX amounts have risen since July 2020 and that the cumulative amount locked in DeFi currently stands at $23.89 billion.
Chainlink (LINK) continues its powerful rally, reaching a new all-time high of $25.50 and surpassing Litecoin (LTC) in terms of the overall market cap to become the seventh-largest CoinMarketCap project. Aave’s valuation has now broken to a new all-time high of $229.39 and the overall equity locked into the platform is $3.44 billion.
The overall market cap for cryptocurrencies currently stands at $936.8 billion and Bitcoin’s supremacy percentage is 63.5 percent.
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