With Bitcoin Cash node upgrade near, measures impact on BCH shorts

by James · May 14, 2023

While Bitcoin Cash received Binance’s support for the upgrade, traders were bearish.
Active addresses on the network have increased in the last week.

As Bitcoin Cash [BCH] community eagerly awaited the rollout of node v26.0.0, the dominance of shorts in the derivatives market continued to prevail. The upgrade, announced in January, was the project’s 10. network polishing since the first in November 2017.

How much is 1,10,100 BCHs worth today?

according to specificationsthere would be four major changes on the Bitcoin Cash “chipnet” test network. The decentralized peer-to-peer electronic cash network had mentioned that the release of the node version would focus more on the interface with more corrections and improvements, rather than consensus.

Exchange support has not deterred traders’ bias

Interestingly, Binance also had drummed up support for the upgrade via its announcement on May 9. Despite this positive development, market sentiment around BCH was skewed towards short positions, as indicated by the funding rate.

At the time of writing, the financing rate was -0.002%. When the metric is in the positive region, it means that longs were willing to pay shorts to keep their positions. But in a case like the present one, it implies that shorts had kept the contracts open and paid longs.

Source: Sentiment

Furthermore, the overall market dynamics appeared to have changed for the cryptocurrency as the upgrade nears activation. On May 13, the outlook for BCH from a sentimental angle was positive.

However, at press time, the weighted sentiment had returned to the negative region, with the value at -0.607. As seen in the chart above, the metric decline suggested that the outlook for BCH’s price action was bleak apart from the action taken by futures and options and traders.

Stability in the spread

Although the price had lost 14.41% of its value over the 30-day time frame, it seems to have stabilized over the last 24 hours.

In terms of market value to realized value (MVRV) ratio Z-score, Santiment revealed that it was -0.413. The calculation is based on the difference between the realized value and the market value of an asset.

Negative values mean that short-term holders had realized more profit than long-term faithful. However, in the current cycle, the metric state indicates that BCH was closer to the top than the bottom.

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Meanwhile, active addresses on the network have increased over the past seven days. At the time of writing, the calculation, which shows the level of interaction with the audience, had increased to 311.00.