At the time of writing, Bitcoin Cash (BCH) is trading at around $288.
Last month, the popular altcoin was showing signs that it would drop further following huge losses at the end of September. However, BCH rebounded spectacularly towards the end of October in response to Bitcoin’s positive momentum.
Overall, BCH hasn’t gained or lost any value since last week, but is down about 1% over the last 24 hours.
Will BCH continue to push higher? And if so, what are the next levels to look out for?
Let’s take a look at the chart for Bitcoin Cash.
As you can see from the chart above, the price of BCH recovered during early September before crashing around 45% in the second half of the month.
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.
BCH then spiked from around $200 to $300 in the space of a few days, representing a 50% jump.
Last week, I claimed it was probable that BCH would start seeing some positive momentum as the price was recording higher lows. At the time of writing, the market is patiently accumulating before making any moves.
Bitcoin Cash is now trading above two of its three EMAs. At the moment, BCH is attempting to push past its 200-day EMA as well, which is the last line of bearish defense (if the volume profile to the left of the chart is to be believed).
The next two resistance levels to watch out for are $300 and again near $400.
If the market starts swinging more strongly 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 it was trading at above $500.
For the time being, I expect BCH to attempt to break the $300 level and find support above its 200-day EMA.
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 above $4 billion – around 235% higher than last month.
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.