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.

Having reached $420 at the start of this week, price again dropped to around $390 last night. BCH has since made a speedy recovery and is now hovering around the 20-day EMA at $401 – a great signal of support.

Will BCH maintain its current 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 10-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. Last week, I mentioned how I expected BCH to find support around $475. This did not happen as price declined accompanying the rest of the altcoin market, with people moving their profits into Bitcoin instead.

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, meaning BCH could still touch the 20-day or 100-day EMA around $345.

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, as we’ve seen in past bull runs.

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.