One of the primary reasons for the decline in the price of Bitcoin is the increased level of selling by crypto miners. Notably, the Miner’s Position Index (MPI) that computes the ratio of Bitcoin moving out of miners wallets to the one-year moving average is hovering around the level which reflects selling by miners.
One of the prominent analyst and CEO of CryptoQuant, Ki Young Ju, issued the following statement just before the price of Bitcoin declined:
Rest of the reasons for Bitcoin’s decline is majorly technical as the numero uno crypto provides altcoins a bit of breathing space to rally. The overall sentiment is also favoring a correction in the price of Bitcoin.
For illustration, the Crypto Fear and Greed Index stood near critically high levels indicating that a price retracement is possible. As a matter of fact, the benchmark has been over 90 (reflecting extreme level of greediness) for the last two months, the lengthiest time span on record.
Miner Position Index looks enough to make a local top. They’re selling $BTC.
I’m going to punt a small short to scalp $BTC in this short-term bearish market.
Chart 👉 https://t.co/RbSJ9xbC56 pic.twitter.com/7RbQN7BgwW
— Ki Young Ju 주기영 (@ki_young_ju) January 10, 2021
In the meantime, altcoin season seems to have begun with focuse of traders shifting away from Bitcoin to other prominent altcoins such as Bitcoin Cash (BCH), which surged to a high of $630, from $420, in the last 24 hours. At the time of writing this article, Bitcoin Cash was trading at $568, reflecting a gain of 0.6%.
The uptrend signifies a technical breakout after years of bear market. The BCH/USD is currently trading near the peak seen in November 2018.
Nevertheless, the largest gain in the last 24 hours is Dash, with its price appreciating about 40%. In the recent rally, cryptocurrency Dash has skyrocketed by more than 100%, to $194, from $95, before retracing to $140 levels. At the time of writing this article, Dash was trading at $133.94, reflecting a gain of 15.7% in the last 24 hours.
The uptrend also indicates a technical breakout from years of decline as top altcoins are now moving along the patch of Ethereum, which recorded a multi-year high of $1,346.50. Several analysts consider Ethereum’s rally as the start of fresh “altseason.”