Bitcoin Cash (BCH) is showing signs of a potential short squeeze as its price approaches a critical resistance zone near $600, while simultaneously becoming more profitable to mine than Bitcoin (BTC). The cryptocurrency has regained traction, pushing toward the $570–$575 region with steady intraday gains and maintaining structural support near $540.
Liquidation data from Binance's BCH/USDT pair reveals a dense cluster of short liquidations stacked between $575 and $600, with the heaviest concentration near $590–$600. This creates a potential squeeze zone where a price break above $580 with sustained volume could trigger forced buy orders from liquidated short positions, adding to organic demand and accelerating upward momentum.
BCH's price structure is tilting toward a breakout attempt, trading in a tightening range between support near $550 and horizontal resistance at $600. A decisive daily close above $600 would invalidate the short-term lower-high structure and open a path toward $640, followed by the $675–$700 liquidity pocket. Failure to hold $550 would reintroduce downside risk toward $510.
Futures market activity signals growing speculative conviction. The 24-hour futures volume has climbed to $905.22 million, while spot volume remains modest at $91.64 million. Open interest has increased 11.60% to $771.89 million, and total derivatives volume surged 57.03% to $907.13 million. Rising open interest alongside price typically indicates new positions entering the market, setting the stage for volatility.
Concurrently, Bitcoin Cash has secured a position among the top 10 cryptocurrencies by market capitalization, becoming the biggest gainer in the category last week with a 12% rally on Friday. This rally was part of a broader 6% weekly gain, erasing an earlier bearish leg that saw BCH retreat to a weekly low of $493.
A key driver of the newfound momentum is mining profitability. According to Coinwarz data, Bitcoin Cash mining revenue recently reached $13.85, slightly surpassing Bitcoin's mining revenue of $13.73 during the same period. This shift in profitability, amid bear market pressures on Bitcoin miners, may be driving attention and demand toward BCH as a more profitable Proof-of-Work alternative.
The recent price action suggests accumulation, marked by large daily candles followed by limited volumes. BCH posted a 15% accumulation candle on February 6th, followed by the 12% move on Friday. The overall market stabilization has provided a 'buy the dip' moment for traders, with BCH outperforming Bitcoin and showing it has not been entirely living in BTC's shadow.
