Bitcoin Cash (BCH) is currently showing strong upwards momentum following the recent positive market trends. My medium-term bet is that the entire cryptocurrency market will continue to turn profits, at least until there is some uncertainty in the economic panorama. As some experts point out, a shift in economic conditions could offset the market, even though there is little correlation between Bitcoin and other financial assets.
Let’s take a dive into what’s going on with Bitcoin Cash.
Bitcoin Cash is currently sitting around $310. After a major pump where volume spiked to yearly records, BCH seems to be stabilising above the key $300 support level. Just in case BCH continues to rally, it’s advisable to hold a position at this point, although history shows there are usually corrections after big moves. This means eager investors might just need to sit back and wait for this wave to settle.
As we can see from the chart above, the 200-day EMA has now been crossed by BCH and, even more interestingly, the 20-day EMA has already crossed the 50-day EMA, which is a really bullish long-term signal.
If this trend continues and the 20 and 50-day EMAs cross the 200-day EMA, we could definitely see price dancing between $350 and $400 soon. However, by looking at BCH’s price action between September and November last year, there are some indications of price resistance around these levels.
Fundamentals remain strong
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 those “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.
This news coupled with the huge volumes we’ve seen recently could mean the bull market is here to stay.
I try not to bet against the momentum, so for now, I would stick with riding the wave upwards.