Bitcoin Cash (BCH) is currently trading at $291 and is struggling to remain close to its 200-day EMA, which currently stands at around $300.

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 altcoins and other financial assets. This means Bitcoin Cash could continue to see minor pump-and-dumps until it goes below its 50-day EMA. If volume continues to drop, I really don’t see any way BCH will recover soon.

Let’s take a look into what’s going on with Bitcoin Cash.

Bitcoin Cash suffered a 30% drop from late April to early May, when it started to recover its lost gains.

As we can see from the chart above, the 20-day EMA is still above the 50-day EMA, which is a really bullish long-term signal. At the time of writing, the 20-day EMA is sitting above $250, while the 50-day EMA is sitting around $230.

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. However, by looking at BCH’s price action between September and November last year, there are some indications of price resistance around these levels.

Volume-wise, it seems most traders are still betting heavily on a downtrend and sellers are still in control.

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.

I try not to bet against the momentum, so for now, I would stick with riding the wave upwards.