Bitcoin is slipping back below $ 40,000, helping some altcoins to make big profits.
Bitcoin ( BTC ) slipped below $ 40,000 again on January 10th, after fluctuating around that mark for the past three days
The resistance at $ 41,500 could not be cracked over the weekend, which is why investors are increasingly switching to altcoins. Dash ( DASH ) and Bitcoin Cash ( BCH ) in particular were able to benefit from this with substantial gains today.
One of the reasons for the downturn is probably increased sell-off by miners. As reported yesterday , the “Miner Position Index” (MPI), a key figure that puts the total of all Bitcoin Supreme funds leaving the wallets of known miners in relation to the annual average value, is currently a value that suggests that the miners sell excessively.
“The Miner Position Index suggests that we’re going to hit a ceiling,” as CryptoQuant CEO Ki Young Ju wrote before Bitcoin went down today. To this end he added:
“They’re selling their $ BTC . I’m setting up a small short position to counter this short-term downturn. “
The other reasons for the downturn are also largely technical in nature. The “Crypto Fear And Greed Index”, a barometer for fear and greed in the crypto market, currently has a particularly high value, which makes a return all the more likely. The key figure has even been above 90 for two months, which shows “extreme greed” among investors.
Win Bitcoin Cash and Dash
The so-called “old season”, i.e. the phase in which the altcoins regain the upper hand, seems to be gaining momentum, because more and more investors are booking partial profits from the Bitcoin record run in order to convert them into “alternative cryptocurrencies” such as Bitcoin Cash ( BCH ) to invest. The latter has climbed from $ 420 to an intermittent peak of $ 630 in the past 24 hours.
This means that Bitcoin Cash can for the first time free itself from a multi-year downward trend. The price of the Bitcoin offshoot has reached its highest value since November 2018.