Bitcoin (BTC) price has once again dropped below the $40,000 level on Jan. 10 after crisscrossing it for the past three days as the spotlight shifted to altcoins, namely Dash (DASH) and Bitcoin Cash (BCH). The BTC price drop comes after another failure to break through resistance at $41,500 in weekend trading.
BTC/USD 1-hour candle chart vs. DASH/USD (orange), BCH/USD (blue). Source: Tradingview
One reason for the drop is likely an uptick in selling by miners. As reported yesterday, the Miner’s Position Index (MPI) that calculates the ratio of BTC leaving all miner wallets to its 1-year moving average has reached levels where miners are selling.
Miner Position Index looks enough to make a local top,” commented CryptoQuant CEO, Ki Young Ju, right before the price dropped.
BTC/USD vs. MPI. Source: Twitter/@ki_young_ju
Other reasons are largely technical as BTC