Bitcoin Cash (BCH) has shown signs of renewed market activity, but the bigger trend remains difficult to ignore.

On August 10, BCH’s daily trading volume increased by around 30%, suggesting that market participation picked up after relatively quiet weekend trading. However, price action did not confirm strong bullish momentum. BCH declined roughly 1.2% over the previous 24 hours, while Open Interest fell by about 2.26%.

That combination is important: trading activity increased, but leveraged positions decreased. This could indicate that traders were reducing leverage rather than aggressively positioning for a breakout.

$BCH Is Still Trapped Below Key Resistance

Bitcoin Cash has struggled to generate enough momentum to break its recent range.

The token has been consolidating between approximately $206 and $221 since the end of July. Although the short-term 4-hour structure remains relatively constructive, demand has not been strong enough to produce a decisive breakout.

The first major level to watch is $221, which has acted as local resistance.

A sustained move above $221 could open the door toward $224 and then $232.

However, the broader picture remains more cautious. $BCH continues to face significant overhead supply between approximately $250 and $280, making this zone an important area for longer-term traders.

Rising Trendline Provides Short-Term Support

One of the more encouraging developments is the rising trendline that has been holding since June 24.

As long as $BCH remains above this trendline, the short-term bullish structure has a chance to remain intact. A successful defense of the support could give buyers another opportunity to challenge the $221–$224 resistance area.

The key question is whether buyers can finally generate enough volume to turn resistance into support.

Without stronger demand, another rejection could simply keep BCH inside the current consolidation range.

Liquidation Levels Could Pull BCH Higher

Liquidation data provides another interesting clue.

Because BCH has spent considerable time trading around the $214 area, short liquidation levels have accumulated above the current price.

The $221–$231 region stands out as a nearby area where short positions could be forced to close if BCH moves higher.

This creates the possibility of a short squeeze.

If BCH breaks above $221 with sufficient momentum, short liquidations could accelerate the move toward $232.

Beyond that, another significant liquidation cluster appears around $257.

This does not mean BCH will necessarily reach $257. Rather, it highlights an area that could become attractive if bullish momentum continues and the market begins sweeping overhead liquidity.

What Could Happen Next?

There are two important scenarios to watch.

Bullish Scenario

If BCH holds its rising trendline and breaks decisively above $221–$224, the next major short-term target would be around $232.

A move through this area could trigger additional short liquidations and potentially push price toward the $250–$257 region.

Bearish Scenario

If BCH fails to break the $221–$224 resistance zone and loses its rising trendline support, the current bullish structure could weaken.

A return toward the $206 area would then become possible, particularly if selling pressure increases.

The larger bearish trend would also remain intact unless BCH can reclaim the higher resistance zones with convincing volume.

Final Take

Bitcoin Cash is currently sitting at an interesting point.

The increase in trading volume shows that market activity is returning, but the decline in Open Interest suggests that leveraged traders are not yet aggressively betting on an upside move.

For the short term, the $221–$224 breakout zone is the key level to monitor. If buyers clear it, $232 becomes a realistic next area of interest, while the $257 liquidation cluster could become relevant if momentum extends further.

At the same time, traders should not ignore the broader trend. BCH still faces substantial resistance above, particularly around $250–$280.

In simple terms:

Above $221–$224 → $232 becomes the key short-term target.

Above $232 → $257 liquidity becomes interesting.

Failure at resistance → BCH could remain trapped between $206 and $221.

The next decisive move will likely depend on whether buyers can turn the recent increase in activity into sustained demand.

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