Bitcoin Cash (BCH) is currently recovering from a substantial dip that saw its price plummet from about $440 last week to $389 today, representing an 11% drop. At the time of writing, price seems to have levelled off and is now consolidating.

Let’s take a look at the latest BCH price action.

Looking at the chart above, we can clearly see BTC has broken through some important resistance barriers.

Bitcoin Cash broke the $330 level around its 200-day EMA in early May, and the 20-day EMA has now moved above the 200-day EMA – a clear bullish signal. Moreover, volumes have remained strong since mid-May, helping BCH to break key levels and find support initially around $360 and later around $400. There has since been some sell pressure that has taken price down about 11%, but it seems most likely that this is just momentary.

If order books stay on the side of buyers, which will become increasingly difficult the more price goes up, we could see BCH climb past the $440 resistance level soon. On the contrary, if price continues to drop, I argue it will find great support close to $360.

Still, be aware we may experience close to 60% drops, as this did happen in a similar situation during 2015 prior to the last massive bull run.

For the time being, I expect BCH to settle above the $440 level with minimal hassle, once Bitcoin gets a push. There is a high probability price will accumulate for a few more days/weeks before making a move upwards.

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.