BCH Rally Hinges on Leverage as Overheating Signals Emerge

Bitcoin Cash (BCH) has seen an 18% price surge over the past day, but the rally remains relatively small given its 52% loss in value over the past 90 days.

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

The perpetual market saw a massive surge in the Funding Rate on the chart, with the reading jumping to 0.0102%, indicating a major increase in long positions in the market.

Meanwhile, the Spot market has seen minimal demand, showing that the price may struggle to sustain its current level due to more selling than buying over the past 10 days.