Bitcoin (BTC) price struggled within the range of $33.500 and $32,000 at the start of this weekend, however, the top cryptocurrency by market cap is still trading above $32,000.
Some analysts have warned that the recent price loss of momentum may be a sign of 'institutional exhaustion' as selling pressure from Asian has surged since January 19.
In spite of Bitcoin’s current downtrend, some institutional investors are insisting of their prediction that BTC price will hit $100,000 prior to the end of of 2021. This indicates that institutions are buoyed by rising investor sentiment and the new proposals for a Bitcoin ETF.
BTC/USDT 4-hour chart. Source: TradingView
In spite of encountering resistance around the $33,000 level, on-chain analyst Willy Woo experienced one potentially positive development for BTC. As per Woo, the Bitcoin Spent Output Profit Ratio (SOPR), a metric that indicates the profit ratio of BTC via dividing the price sold by the price paid, had "a touchdown".
"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."
Bitcoin adjusted SOPR. Source: Glassnode
Woo also indicated that investors less probably sell at a loss, an early signal that Bitcoin could near to find a bottom.
Altcoins and DeFi tokens soar
DeFi tokens and altcoins continued to pave their own path with Bitcoin seeking for support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) all rallied around 5% to 7%.
An increase in DEX activity may largely result in the surge in the price of many DeFi-related tokens. As per Dune Analytics, monthly DEX volumes have surged since July 2020 and now total value locked in DeFi is at $23.89 billion.
Monthly DEX volume by project. Source: Dune Analytics
Chainlink (LINK) maintained its strong rally, hitting a new all-time high at $25.50 and outpacing Litcoin (LTC) in light of total market cap to be the seventh-largest project listed on CoinMarketCap. Aave price also reached to a new all-time high at $229.39 and the total value locked in the platform is $3.44 billion.
The overall cryptocurrency market capitalization currently sits at $936.8 billion while Bitcoin’s dominance rate is 63.5%.