Since the start of September, Bitcoin Cash (BCH) has been attempting to recover from a substantial downtrend that hit the entire cryptocurrency market hard over the summer.

However, after rising from $275 to a peak of $325, the entire cryptocurrency market has now suffered a huge meltdown.

At the time of writing, Bitcoin Cash is trading at around $221 after a massive drop in price for all altcoins and Bitcoin (BTC).

Overall, BCH has lost about 30% since last week and 23% over the last 24 hours.

Will the downtrend continue for much longer? Or will the altcoin market start to recover quicker than BTC?

Let’s take a look at the chart.

Looking at the chart above, we can see that the price of BCH recovered during early August before crashing twice towards the middle and end of the month. Unfortunately, the gains of early August were lost and the price came crawling back down to below $300 in September. At its lowest point during the past month, BCH touched $270 before recovering almost immediately to the $300-$310 level.

Since the start of September, BCH started recovering and even pushed past its 200-day EMA. However, due to Bitcoin’s latest bearish momentum, the coin took a massive hit this week, plunging through all its EMAs and entering a period of freefall down to around $220.

Last week, I mentioned there could be a chance for more upwards movement. However, at the time of writing, that now seems highly unlikely until we have a period of consolidation around the new low.

In August, I mentioned I expected BCH to touch $360 sometime this year if it kept up its positive momentum. Although BCH is now further away from that level, considering the massive volatility currently in the crypto markets, I’m still confident said target can be achieved.

Safe trades!

BCH fundamentals

I recently spoke with Bitcoin Cash’s strongest advocate, Roger Ver, and discussed the most recent developments on the horizon for BCH. You can find all the details here, but the most juicy news seems to be the recent spike in adoption due to the implementation of smart contracts. Roger, like myself, believes key components for mass adoption are speed and flexibility. What Bitcoin Cash Oracles offers is a way for any user to easily deploy an “escrow” transaction that can be used to trade globally – without the hassle of trusting the other party.

I personally think these “trade escrows” will be key in terms of adoption, especially for work-related tasks. In a way, they do enable milestone-based funding, which may be the new and better way of conducting ICOs instead of simply creating an extra layer of complexity with STOs that require KYC and accreditation – something that goes against what we should be promoting within the crypto ecosystem.