Bitcoin (BTC) price fell below the $ 40,000 level again on January 10th, after piling up for the past three days when the focus shifted to Altcoins, Dash (DASH) and Bitcoin Cash (BCH) has been. The BTC price drop is due to the fact that the resistance at USD 41,500 could not be broken again over the weekend.
BTC / USD 1 hour candlestick chart vs. DASH / USD (orange), BCH / USD (blue). Source: trade view
One reason for the decline is likely an increase in sales by miners. As reported yesterday, the Miner’s Position Index (MPI), which calculates the ratio of BTC leaving all of the miner’s wallets to its 1-year moving average, has reached a level where miners are selling.
The Miner Position Index seems to be enough to hit a local top, “commented Ki Young Ju, CEO of CryptoQuant, just before the price fell.
“They’re selling $ BTC. I’m going to put a little short on $ BTC in this short-term bearish market.”BTC / USD vs. MPI. Source: Twitter / @ ki_young_ju
Other reasons are largely technical, as BTC gives altcoins some time to catch up and based on the mood. The Crypto Fear and Greed Index, for example, has stayed at dangerously high levels, suggesting a pullback is likely. In fact, the metric has stayed above 90 or “extreme greed” for two months, the longest period in its history.
Crypto Fear & Greed Index. Source: Digital Assets Data
Bitcoin Cash follows the Ethereum outbreak
In the meantime, the season continues, with the upward movement in Sunday trading apparently shifting from BTC to Bitcoin Cash. The latter rose from $ 420 to $ 630 in the last 24 hours.
BCH / USD 1-day candle chart (Bitstamp). Source: trade view
The move marks a technical breakout from a multi-year bear market with BCH / USD at its highest level since November 2018.
DASH / USD 1-hour candlestick chart (Coinbase). Source: trade view
The biggest win over the past 24 hours, however, is Dash, with prices up around 40%. During the brief parabolic rally, DASH rose over 100% from $ 95 to $ 194, then returned to the $ 140 level.
The move also marks a technical breakout from a multi-year slump as large altcoins are now following in the footsteps of Ethereum from last weekend, which several analysts have cited as the possible start of the “old season”.