Chainlink and Aave hit a new ATH as Bitcoin bulls struggle to keep the BTC price above $32,000.
Aave and Chainlink hit new ATH with Bitcoin struggling to hold the $32,000 MARKET
The price of Bitcoin (BTC) opened the weekend tied up at $33,500 to $32,000, but by the time this article was written, the digital asset is struggling to stay above $32,000.
Some analysts have warned that the recent loss of momentum in price may be a sign of „institutional exhaustion,“ as sales pressure from Asia has increased since 19 January.
Despite Bitcoin’s current downward trend, some institutional investors are adhering to the forecast that the BTC price will reach US$100,000 before the end of 2021. This suggests that institutions are driven by growing investor sentiment and new proposals for a Bitcoin ETF.
BTC/USDT 4-hour chart. Source: TradingView
Although Bitcoin still faces resistance around the $33,000 level, network analyst Willy Woo sees a potentially positive development for BTC. Woo said that BTC’s Spent Output Profit Ratio (SOPR), a metric that shows BTC’s profit ratio by dividing the price sold by the price paid, had „a touchdown.
According to Woo, there was:
„SOPR full on-chain restart. Currencies that move between investors per hour (24h MA) no longer generate profit on average. To push the SOPR down, investors would have to be willing to sell at a loss“.
BTC SOPR adjustment. Source: Glassnode
Woo also suggested that investors are less likely to sell at a loss, an initial sign that Bitcoin may be close to bottom.
Altcoins and DeFi tokens go up
DeFi tokens and altcoins continued to open their own path as Bitcoin sought support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) increased by about 5% to 7%.
The increase in the price of many DeFi related tokens was largely the result of an increase in DEX activity. Data from Dune Analytics show that monthly DEX volumes have increased since July 2020, and currently the total amount allocated to DeFi is US$23.89 billion.
Monthly DEX volume by project. Source: Dune Analytics
Chainlink (LINK) continued its strong rise, establishing a new ATH of $25.50 and surpassing Litecoin (LTC) in terms of total market capitalization to become the seventh largest project listed in CoinMarketCap. Aave’s price also reached a new ATH of $229.39 and the total value blocked on the platform is $3.44 billion.
The overall market capitalisation of cryptomaps is now at $936.8 billion and the Bitcoin dominance rate is 63.5%.