BCH Leverage-Fueled Rally May Leave Price Vulnerable to Pullback

BTC's rival, Bitcoin Cash (BCH), has seen an 18% price surge over the past day. However, this move remains relatively small as BCH has yet to recover from its 52% loss over the past 90 days.

The rally is largely driven by leverage, which may leave BCH vulnerable to a significant pullback. This leaves the asset at risk of further decline despite its present bullish outlook.

The perpetual market appears heated, with longs dominating capital and liquidity. The Spot market has failed to match this demand, raising questions about whether traders have overheated the market.