- ORDI and BCH were among the few cryptocurrencies that rose by double digits in the past 24 hours.
- BCH’s uptrend may turn weak, but ORDI has the potential to continue.
Cryptocurrencies included Bitcoin cash [BCH] And Ordi [ORDI] were two of the biggest winners in a move that saw Bitcoin [BTC] reaching a new high this year. At the time of writing, ORDI was up 30% over 24 hours, while BCH was up more than 10%.
This move may not be surprising to some who have been following Bitcoin’s correlation with these assets. For Bitcoin Cash, the 2017 Bitcoin hard fork seems to be working in its favor.
For context, a hard fork refers to an update implemented in a blockchain that can cause the split into two cryptocurrencies.
Connected in the movement
BCH was the hard fork of Bitcoin, but still functions as a decentralized peer-to-peer network like the best blockchain. As a result, BCH followed most times when BTC pumped. This was evident from the series of articles AMBCrypto published earlier this year.
In the case of ORDI, its status as the highest BRC-20 token has promoted its strong correlation with Bitcoin. BRC-20 is an experimental token standard that enables the minting of fungible tokens on the Bitcoin blockchain.
It is also important to note that ORDI’s rise to $42.25 means it has hit a new All-Time High (ATH). In terms of social dominance, data from Santiment analyzed from AMBCrypto showed that ORDI and BCH increased.
Source: Santiment
At the time of writing, Bitcoin Cash’s social dominance stood at 0.81%, while ORDI had it psycho the prestigious dominance of 1%. The increase in the measure suggests that the assets are receiving more attention from the media and market participants.
Be careful, not all that glitters is gold
So it is likely that traders are trying to profit from the price movement while keeping an eye on the potential tops and bottoms. An assessment of the funding rate showed that the metric was completely green.
While ORDI’s financing rate was 0.015%, BCH was 0.01%. Financing rates are fees paid between shorts and longs to keep their contract open. If the Funding Rate is negative, it means traders are bearish and expect the price to fall.
Source: Santiment
however, the financing rates for BCH and ORDI were positive at the time of writing, confirming traders’ bullish bias regarding individual price action.
Moreover, traders should not get too excited about BCH’s price action. This is due to the trend shown by the Open interest. Open Interest shows the total number of outstanding futures contracts remaining at the end of a trading period.
Realistic or not, here it is ORDI’s market capitalization in terms of BCH
At the time of writing, Open Interest around Bitcoin Cash had fallen to $213.74 million. When the drop in the Open Interest is set by the price action, it means that the upside direction of BCH could become weak.
So there is a good chance that the recovery will soon come to a halt.
Source: Coinglass