Bitcoin slides back below $40,000, helping some altcoins make whopping gains.
Bitcoin (BTC) slipped below US$40,000 again today, January 10, after the price had already fluctuated around this level over the past three days. The resistance at 41,500 US dollars could thus not be cracked over the weekend, which is why investors are increasingly switching to altcoins. In particular, Dash (DASH) and Bitcoin Cash (BCH) were able to benefit from this today with substantial gains.
Bitcoin compared with Dash (orange) and Bitcoin Cash (blue).
One of the reasons for the downturn is likely increased selling by miners. As reported yesterday, the „Miner Position Index“ (MPI), a metric that relates the total of all Bitcoin funds leaving the wallets of known miners to the annual average, is currently recording a value that suggests miners are overselling.
„The Miner Position Index suggests we are hitting a ceiling,“ as CryptoQuant CEO Ki Young Ju had written before Bitcoin took a dive today. To that effect, he added:
„They are selling their $BTC. I’m setting up a small short position to counter this short-term downturn.“
Bitcoin price and MPI.
The other reasons for the downturn are also mostly technical. For example, the Crypto Fear And Greed Index, a barometer of fear and greed in the crypto market, is currently at a particularly high level, making a retracement all the more likely. The metric has even been above 90 for the past two months, indicating „extreme greed“ among investors.
Bitcoin Cash and Dash are gaining
The so-called „alt season,“ the phase in which altcoins regain the upper hand, seems to be gaining momentum as more and more investors book out partial profits from Bitcoin’s record run to invest in „alternative cryptocurrencies“ such as Bitcoin Cash (BCH). The latter has climbed from $420 to an interim peak of $630 in the past 24 hours.
Bitcoin hourly chart (Bitstamp).
This is the first time Bitcoin Cash has been able to break free from a multi-year downtrend. The price of the bitcoin derivative has thus reached its highest value since November 2018.
The clear winner of the day, however, is Dash (DASH), as the altcoin managed to rise almost 40% today. In the process, the price first literally „exploded“ from $95 to a high of $194, which corresponded to a gain of more than 100%. Subsequently, however, the cryptocurrency corrected again to 140 US dollars.
With this, Dash can also end a multi-year slide, which proves that more and more altcoins are following in Ethereum’s footsteps. The second largest cryptocurrency had already made a high last weekend, which some experts see as the starting signal for the „alt season“.