At the time of writing, Bitcoin Cash (BCH) is trading at around $233. Even though last week the altcoin was showing signs of a further drop, BCH rebounded during the weekend.

Overall, BCH has gained more than of 5% since last week and, rising 4% in just the past 24 hours.

Will BCH start a new consolidation phase above $230?

Let’s take a look at the chart of Bitcoin Cash…

BCH chart, by Trading View

We can see that the price of BCH recovered during early September, before crashing twice towards the end of the month.

Unfortunately, the gains of mid-September were lost and the price came crawling back down to below $230 in October, as the huge market-wide meltdown hit the coin hard. At its lowest point over the past month, BCH touched $200 before recovering almost immediately to more than $225. Currently, it’s trading above $22o.

Last week, I assigned a higher probability to BCH going upwards, as the price has been claiming higher lows. It did dropped lower towards $211, however, it recovered almost immediately during the weekend, going north of $235.

In essence, BCH gained over 10% from its weekly lowest point to its highest.

Nevertheless, Bitcoin Cash is trading well below all its EMAs. Looking at the volume profile, we can clearly see BCH has strong support between $220 – $230 and almost no resistance until the $270-$280 level, where the 50-day EMA sits.

If the market starts swinging stronger to the upside over the next couple of weeks, some altcoins like BCH have a high chance of making gains since the coin has already lost close to 60% since July, when BCH was trading above $500.

For the time being, I expect BCH to fluctuate between $230 and $270. If fresh investment comes into the market over the following days, there’s a decent chance Bitcoin Cash will continue making higher lows while it accumulates to the upside.

Right now, volume sits at just below $1.7 billion, around 30% higher than last week.

Safe trades!

BCH fundamentals

https://youtu.be/9i6rJF6q_VI

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.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.