July 21, 2024

BRC-20 tokens, commonly known as Ordinals, are experiencing major upward momentum as Bitcoin breaks past the $39,000 level. ORDI, the biggest of the BRC-20 tokens, is pulled up by BTC’s rally. According to CoinGecko, ORDI is up nearly 36% since yesterday, and currently trading at $32.42, it’s new all-time high. 

This recent price action places ORDI under the limelight, putting enormous pressure on the bears while giving big gains for the bulls. 

$39K Barrier Broken: What’s Next? 

The market is encountering a slight rally with Bitcoin gaining momentum on the legal side of things. The US Securities and Exchange Commission (SEC) has been eyeing the approval of a spot Bitcoin exchange-traded fund (ETF), giving traditional investors a safer avenue to invest in crypto. 

Crypto-related stocks also experienced a big jump in price, with names like Clean Spark (CLSK) and Iris Energy (IREN) making headlines. Michael Saylor’s Microstrategy is also up nearly 6% on the daily timeframe. 

Top BRC-20 coins by market cap. Source: Coingecko

Ordinals, on the other hand, are following suit. Coingecko’s BRC-20 index shows a nearly 40% increase in price in the past 24 hours.

Although no major developments have followed Ordinals in the past few months, Bitcoin’s most recent rally gives the bulls a lot of hope for a continuous rally. 

ORDIUSD currently trading at $32.51 territory on the daily chart: TradingView.com

Investors Should Exercise Caution On These Levels…

The current price action suggests that ORDI’s price has no stable support and will eventually revert to more sustainable levels.

However, bulls might be able to use the $25 price level to bounce upward to a favorable position. But if they fail to hold this price point once the hype settles, the $19 price point will be the lowest it can go. 

Source: TradingView

ORDI Price Boost From ETF Nod

Investors and traders should keep in mind the SEC’s Bitcoin ETF decision. If the agency approves, this will bring more investors to crypto, thus boosting the price upward. But investors and traders shouldn’t bank their money on this single decision alone. 

Economists are still optimistic about a “soft landing” as deflationary winds continue to blow through sectors of the economy. If this continues and the US Federal Reserve does reduce its current 5.5% interest rate, investors and traders will have more confidence in the market.

Paired with a positive approval of the Bitcoin ETF by the SEC, it will push prices upwards more, including the Ordinals. Still, bulls should be able to handle a slight decline in price if they can hold onto the $25 price level. 

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

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