The bitcoin (BTC) price fell below $ 40,000 on January 10 after surpassing it in the past three days, when all the attention was focused on altcoins, namely Dash (DASH) and Bitcoin Cash (BCH). The fall in the price of BTC came after it again failed to overcome the $ 41,500 resistance in the weekend trading.
One of the reasons for the decline was probably the increase in miner sales. As reported yesterday, the Mining Center Index (MPI), which calculates the percentage of BTC that leaves all mining portfolios at its annual moving average, has reached the levels at which miners are selling.
Ki Yong Joo, CEO of CryptoQuant, commented just before the price drop: “The miner’s position figure seems to be enough to reach a local peak.”
“They sell bitcoins in US dollars. I’m going to beat a small dollar amount of BTC in this short term bear market. ”
BTC / USD versus MPI. Source: Twitter / @kioungju
The rest of the reasons are mostly technical. Bitcoin gives altcoins time to catch up and gets demoralized. For example, the Crypto Fear and Greed Index remained dangerously high, indicating a potential rejection. In fact, the scale remained above 90 or “extremely greedy” for two months, the longest period in its history.
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Altseason, meanwhile, is maintaining a bullish trend that appears to be shifting from BTC to Bitcoin Cash in Sunday’s trading. The last rate has grown from $ 420 to $ 630 in the last 24 hours.
The move marks a technical break in a multi-year bear market with BCH / USD now hitting its highest level since November 2018.
1x Dash / USD light chart (Coinbase). Source: Tradingview
However, Dash is the biggest winner in the last 24 hours as the price has risen nearly 40%. During a short rally on the plate, the Dash rose more than 100% from $ 95 to $ 194, but then plunged back to $ 140.
The move also represents a technical break from a multi-year recession as major cryptocurrencies now follow in Ethereum’s footsteps since last weekend, as many analysts have pointed to the possible start of an “alternate season.”