Bitcoin Cash (BCH) price is showing signs of life again. While the token is up over 3% in the last 24 hours, it’s weekly price action is still down 2.3%. That can be confusing for many traders.
On the one hand, BCH is up 82% year-to-date and over 37% in the last three months. On the other hand, it’s been stuck under a key resistance zone.
As most altcoins are cooling off, BCH is quietly building up momentum. But one big question remains: Can it hold the current pattern and break above $600? The data suggests it might, provided a few things fall in place.
Bitcoin Cash Price Action Shows Key Resistance at $572
Bitcoin Cash is trading inside a clear ascending channel, which is a bullish pattern. This means the price has been making higher lows and higher highs over time.
That’s usually a sign that buyers are still in control.
But BCH is now testing an important area around $572. That level lines up with the 0.618 Fibonacci retracement, which often acts like a speed bump for prices.
If BCH breaks above $572, the next key levels are $607 and $664, based on Fibonacci extensions. Those are the next possible resistance points where the price could slow down again.
So far, the channel is holding. But a close below $520 would break the pattern and cancel the bullish outlook.
Hidden Bullish Divergence Hints at a Move Higher
A closer look at the RSI (Relative Strength Index) reveals something important.
While the BCH price made a higher low between July 24 and August 5, the RSI made a lower low during the same time. This is known as a hidden bullish divergence.
This kind of signal usually means that the price trend may continue higher, even if momentum looks weak at first.
It’s a sign that buyers are quietly stepping in, and the market may be getting ready for a bounce.
Or it is an easy way of saying that the selling pressure is waning. Notably, as long as the RSI continues to rise and stays above 50, the bullish setup remains valid.
Outflows and Open Interest Show Confidence From Holders
Looking at exchange data, spot netflows for BCH have been negative, especially over the past few weeks. This means more BCH tokens are moving out of exchanges than going in.
That’s usually a sign of accumulation; people are taking their tokens off exchanges and likely holding for the long term.
At the same time, futures open interest has climbed back above $528 million. This shows that traders are opening more leveraged positions, expecting bigger price moves.
It also means more money is flowing into the BCH market.
The combination of outflows and rising open interest suggests that both long-term holders and traders are feeling optimistic.
Long Bias in Liquidation Map Could Trigger a Short Squeeze
The Bitget liquidation map tells another important story. At the moment, long positions total $134 million, while short positions only make up $88 million.
That’s a big difference, and it shows that most traders are betting on BCH going up.
But there’s a twist. The price is hovering near $571, right under a pocket of high short leverage.
If BCH breaks above this zone, it could trigger forced exits from short positions, which traders call a short squeeze. That kind of event often sends prices up quickly in a short time.
So, if BCH crosses above $572 with volume, a squeeze could push it quickly toward $596 and $607. Right now, Bitcoin Cash price is sitting on top of a bullish setup.
The ascending channel is intact, hidden bullish divergence supports a trend continuation, and netflows plus open interest show strong market confidence.
The only thing BCH needs now is a clean break above the $572–$580 zone.
If that happens, $607 and $664 are the next possible targets. But if Bitcoin Cash price breaks below $520, the bullish case gets invalidated.
