Aave and Chainlink hit new highs as Bitcoin’s price struggles to capture $ 32,000

Bitcoin (BTCThe price opened on the weekend in the range of $ 33,500 to $ 32,000 but at the time of writing, the digital asset was struggling to hold in excess of $ 32,000.

Few analysts have warned that the recent loss of momentum could be a sign ofInstitutional depletionSelling pressure from Asia has increased since January 19.

Despite Bitcoin’s current downward trend, some institutional investors are sticking to their predictions The price of BTC will reach $ 100,000 Before the end of 2021. This indicates that institutions are recovering due to higher investor sentiment and New Bitcoin ETF proposals.

4 hour chart BTC / USDT. Source: TradingView

While Bitcoin is still facing resistance around the $ 33,000 level, analyst on the chain Willy Woo sees a potential positive development for BTC. Woo He said The Bitcoin Spending Profit Ratio (SOPR), a measure that shows the profit percentage for BTC by dividing the price sold by the price paid, has „fallen.”

According to Woo there were:

„A complete SOPR reset on the chain. Currencies moving among investors in the hourly (24 hour MA) no longer carry profit on average. To push SOPR down, investors must be prepared to sell at a loss.”

Bitcoin modified SOPR. Source: glass

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

Altcoins and DeFi tokens soared

DeFi coins and altcoins continued to make their own way as Bitcoin looked for support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) all rose roughly 5% to 7%.

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The spike in the price of many of the tokens associated with DeFi was the result of increased DEX activity. Data from Dune Analytics shows that monthly DEX volumes have increased since July 2020, and the total DeFi booked value is currently $ 23.89 billion.

DEX monthly volume by project. Source: Dune analyzes

Chainlink (LINK) continued its strong rally, posting a new all-time high of $ 25.50 and overtaking Litecoin (LTC) By total market cap to become the 7th largest project listed on CoinMarketCap. Aave’s price also breached an all-time high of $ 229.39 and the total value pegged in the platform is $ 3.44 billion.

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