Bitcoin Cash (BCH) has been hit hard by the sudden market downtrend. Its price, which was trading above $400 just last week, is now just above $300.

BCH is currently trading at around $308. Prior to the bounce back above $300, BCH had lost close to 40% of its total market value in just a few days.

However, although BCH has been one of the worst performers of the last few days, it is still far away from its yearly lows (the coin was trading at close to $120 earlier in the year).

Looking at the chart, we can see price is trading below all its EMAs, even though volume-wise BCH is still supported by a massive wall near $168-$170. As long as Bitcoin recovers, I expect BCH to do the same.

Bitcoin Cash broke the $350 level around its 200-day EMA in early May, and the 100-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 I expect BCH to start moving towards $500. This clearly didn’t happen as the market tanked instead. However, when the recovery comes, I expect BCH to quickly go back to the $400 region.

For now, BCH will keep trading around the $300-$320 levels until there’s a push in BTC. 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.