For the past week, Bitcoin Cash (BCH) has been recovering from the month-long downtrend that hit the entire cryptocurrency market hard over July. Its price, which was trading above $400 going into July, is now close to $351 after recovering from a low of $300 last week, representing a 16% rise in price.

BCH had been trading below key levels until this weekend, when price once again climbed past all its EMAs.

Let’s find out why.

Looking at the chart above, we can see that the price of BCH is now trading above all its EMAs after a gradual recovery over the last couple of weeks.

Bitcoin Cash broke the 100-day EMA, the 50-day EMA, and the 20-day EMA during the weekend – a clear bullish signal. Moreover, volumes have remained strong, helping BCH to break key levels and find support.

Last week, I mentioned I expected BCH to start moving back towards $400 following the market downturn. This is now seemingly happening, albeit slowly as the bears and bulls have been tussling all week, keeping any price increases relatively small. At the moment though, BCH’s recovery is well underway.

If the trend is able to keep up this momentum, we could see BCH moving towards $360 and higher over the next week.

However, beware of sudden moves towards $280 and down to $258. To go any lower, BCH would need to break most of its price walls – something I don’t think will happen.

In addition, BCH is trading close to its bottom vs BTC – as I highlighted yesterday – meaning we could be near a reversal.

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.