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- 1 Wrapped bitcoin price is currently trading at $31060.31 while witnessing a loss of -0.31% during the intraday trading session.
- 2 Wbtc trades above the 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of Wrapped bitcoin is 87.94%.
A tokenized version of bitcoin which runs on Ethereum blockchain was launched in the year 2019, known as Wrapped Bitcoin(WBTC). It is also backed by Bitcoin in a 1:1 ratio through a network of automatically monitored merchants and custodians, who ensure that its price is pegged by Bitcoin at all times. This allows users to transfer liquidity between the BTC and the ETH in a decentralized and autonomous manner.
In March, Wbtc price gained bullish momentum, rising from the support level of $20000 and forming a high at $31227. The cryptocurrency’s price then entered into a bearish trend. The price fell to $25000 and formed a support. As soon as the news was revealed about how BlackRock filed for the Bitcoin Spot ETF to the Securities and Exchange Commission (SEC) of United States, Wbtc price started to shoot up.
The price is up 23% since the middle of June. The price got stuck in a consolidation zone ranging between $30700 and $30000. Price consolidated for several and the previous candle gained enough support from buyers that it broke the resistance level of $30700 and closed above it.
The current candle is successful in breaking above the upper wick of the previous candle but turned bearish due to less bullish pressure. The candle should close above $31000 because if it is below this figure, it can push the price back into the zone.
If bears can push the price below $30700, it would enter into the previous zone and might fall down toward $30000. For the price to head toward $32000, it needs to close above $31200.
Will WBTC Price Reach $32000 In Upcoming Days?
The cryptocurrency’s price is trading above the 20,50,100 and 200-day EMAs, suggesting that price is in a strong bullish trend. The chaikin money flow score is 0.36, indicating strength in the market. Relative strength index (RSI) is hovering near the overbought region, crossing above the 70 mark then coming back below it.
The RSI currently trades at 68.98 which indicates high bullish momentum in the price. The bands of bollinger have expanded, indicating high volatility in the market. The upper band of Bollinger resides near $33000. If the price stays above $31000, there is a possibility of moving toward $33000 as there is room for the price to rise.
Conclusion
The market structure and price action of Wrapped bitcoin is highly bullish after it shot up from the support level of $25000. The surge is due to BlackRock filing for the Bitcoin Spot ETF. Traders should wait for the price to close above $31200 before looking for bids. Additionally, if the price breaks below $30700, it might fall toward $30000.
Technical levels
Major support: $30000 and $28300
Major resistance: $31200 and $32000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
