Last week, Bitcoin Cash (BCH) was slowly recovering from a substantial dip earlier in the month that saw its price plummet from around $440 to $389, representing an 11% drop.

BCH has since made an incredible move upwards, going from $420 to higher than $500, representing an almost 20% gain. Price has now corrected to around $475, where we can see a clear support line forming.

Will BCH keep the momentum and fly even higher?

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

Looking at the chart above, we can clearly see BCH 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. Looking at the current signals, BCH appears to be finding new support around $475 following the pump in price last Friday.

Last week, I predicted BCH could moon past $440, which did eventually happen. We should be aware the new target upwards is around $520, where some resistance has formed. To the downside, Bitcoin Cash could eventually fall and touch the $420 support level again.

Be aware that 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 $500 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.