Since the start of September, Bitcoin Cash (BCH) has been attempting to recover from a substantial downtrend that hit the entire cryptocurrency market hard over the summer.
At the time of writing, Bitcoin Cash is trading at around $306, gaining about 3% since last week when it was trading at $296.
BCH has now rallied about 15% since the start of the month after recovering from a drop down to $270 towards the end of August.
Will BCH continue to consolidate or start a new trend upwards?
Looking at the chart above, we can see that the price of BCH recovered during early August before crashing twice towards the middle and end of the month. Unfortunately, the gains of early August were lost and the price came crawling back down to below $300. At its lowest point during the past month, BCH touched $270 before recovering almost immediately to the $300-$310 level.
Since the start of September, we can see price has slowly been creeping back up, although it still hasn’t tested any of its EMAs. We can also see that the EMAs have inverted – a clear bearish signal for most traders and analysts.
However, with Bitcoin also consolidating in an upwards direction, there’s potential that BCH will start testing its EMAs soon.
BCH volume also took a plunge to around $1 billion at the start of the month, but has since recovered to around $1.4 billion.
In August, I mentioned I expect BCH to touch $360 if it keeps up its momentum. This is still a target for the current month.
Be prepared for sudden moves towards $280 and down to $258 though. To go any lower, BCH would need to break most of its price walls – something I don’t think will happen.
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.