Bitcoin Remains Flat, While This Gaming Token Skyrockets

GameFi Tokens Surge as Bitcoin Remains Stagnant

While Bitcoin continues to hover within a prolonged consolidation phase, struggling to break out of the $90,000 range and maintaining a bearish technical outlook, another segment of the crypto market is experiencing remarkable growth. GameFi tokens have seen significant double-digit increases this week, with Axie Infinity leading the charge by soaring 131% over the past seven days, and The Sandbox also enjoying a strong rebound.

Precious Metals and Traditional Markets React

The broader financial landscape is experiencing notable volatility. Gold reached a historic milestone on Thursday, surpassing $4,900 per ounce for the first time, while silver climbed above $99, both setting new records as investors shift away from riskier assets. Meanwhile, the S&P 500 is on track for its second straight week of losses, following market jitters sparked by President Donald Trump's comments on Greenland and proposed tariffs on the European Union. In response to these developments, Goldman Sachs has projected that gold could reach $5,400 by the end of the year, citing the accelerating trend of currency debasement.

Bitcoin (BTC): Facing Technical Resistance

Bitcoin has managed a modest 1.6% gain today, currently trading at $90,895 after rebounding from lows near $88,000 earlier in the week. Despite this slight uptick, technical indicators reveal ongoing weakness and uncertainty among bullish investors, particularly those with a long-term outlook.

Bitcoin (BTC) price data. Image: Tradingview

The most pressing technical concern is the emergence of a “death cross” pattern, which appeared on Wednesday after a brief and unsuccessful attempt at a “golden cross.” A death cross occurs when the 50-day exponential moving average (EMA) falls below the 200-day EMA, typically signaling bearish momentum or at least a period of sideways trading. In contrast, a golden cross is seen as a bullish indicator.

When a shorter-term moving average dips below a longer-term one, it suggests that recent price action is weaker than the broader trend, often interpreted by traders as a shift in favor of the bears.

Adding to the concern, Bitcoin is currently trading below both its 50-day and 200-day EMAs, with the 50-day EMA acting as immediate resistance near the Fibonacci level of $91,353. These levels often serve as natural zones of support and resistance within established trends.

For bullish momentum to return, Bitcoin would need to convincingly reclaim these moving averages. So far, however, attempts to stay above them have been short-lived.

Additionally, Bitcoin’s Relative Strength Index (RSI) stands at 48.3, placing it squarely in neutral territory. The RSI, which measures buying and selling pressure on a scale from 0 to 100, considers readings above 70 as overbought and below 30 as oversold. At its current level, Bitcoin is not showing strong buying or selling momentum, but the overall sentiment remains slightly bearish.

Axie Infinity (AXS): GameFi’s Breakout Performer

In stark contrast to Bitcoin’s indecisiveness, Axie Infinity (AXS) has experienced explosive growth. The AXS token, which serves as the reward currency for the Axie Infinity game, has climbed 7.6% today to reach $2.88. Over the past week, it has skyrocketed by 131%, and over the last month, it has surged by 251%—all during a broader market downturn. This dramatic rally has propelled AXS from relative obscurity to one of the most talked-about assets in the crypto space this week.

Axie Infinity (AXS) price data. Image: Tradingview

The recent surge in AXS appears to be driven by several factors, including positive developments from Sky Mavis, the creators of Axie Infinity, and renewed trader enthusiasm as price momentum accelerates.

Earlier this week, Sky Mavis introduced Origins Season 16, featuring a revamped reward system centered around bAXS—a non-transferable token pegged 1:1 to AXS. This change aims to reduce immediate selling pressure and deter automated farming, signaling a move toward a more sustainable in-game economy.

This update has sparked a notable increase in trading volume, a rebound in daily active users, and significant accumulation by large holders, while capital continues to flow from a stagnant Bitcoin market into GameFi tokens.

Image: DappRadar

It’s important to note that despite the recent excitement, the hype surrounding Axie Infinity had faded long ago, and AXS remains down nearly 99% from its all-time high reached four years ago during the peak of crypto gaming enthusiasm. As a result, those who invested near the top are unlikely to be impressed by the current rally.

However, investors who entered the market in the past month have seen substantial returns.

From a technical perspective, AXS is displaying extremely bullish signals across multiple indicators, suggesting that the current rally may have further momentum.

The Average Directional Index (ADX) for AXS is currently at 50, more than double Bitcoin’s 27.0, indicating a very strong trend. The ADX measures the strength of a trend on a scale from 0 to 100, with readings above 25 signifying a clear trend and those above 40 considered exceptionally strong. At 50, AXS is demonstrating robust upward movement.

Additionally, the token recently entered a golden cross, and its price is trading above both key moving averages, indicating that bullish investors are in control and that these averages are now acting as support rather than resistance.

However, there are cautionary signals for those considering entering the market late. The RSI for AXS is at 82.4, well into overbought territory. Typically, an RSI above 70 suggests that buying pressure has been excessive and that a pause or correction may be imminent. At its current level, AXS is signaling that a pullback could be on the horizon.

Given the recent 131% surge, entering a long position at this stage carries significant risk of a correction.

Looking at the charts, AXS has broken out of a large descending channel that had constrained its price since early 2024. After months of declining highs and lows that pushed the price from above $4 down to around $1, the breakout above $2 marks a significant shift in market structure. The token is now forming higher highs and higher lows, a classic sign of an emerging uptrend.