WBTC price is currently stuck in a wide range consolidation zone ranging between $29800 and $31500 since the end of June, 2023. As bitcoin price has become stagnant above $30000, WBTC price has also followed the footsteps. Wrapped Bitcoin has a correlation of 1 with respect to Bitcoin.
The surge of Wrapped Bitcoin started during the middle of June as BlackRock, the world’s largest asset manager, filed for the Bitcoin Spot ETF, which would provide investors to get exposure to the cryptocurrency, as the crypto market comes under intense regulatory scrutiny.
WBTC price surged on 13 July due to the XRP vs Securities and Exchange Commission lawsuit which has been going on since 2020. The cryptocurrency price did rise above $31500 but could not close above it. The move was halted as the price rejected $31795 and the next candle witnessed a strong sell off which pushed the price below $30400.
The previous candle has closed with a long lower wick which has a small body indicating the presence of bulls below $30000. The recently formed candle shows that the price is losing momentum as it reached near the support level of $29800.
The current candle is bearish and striving to stay above $30000. If bears can push price below $29800, it might melt toward the next support level of $28300 causing a loss of roughly 5% in the price. The bullish pressure has been strong and traders should wait for proper confirmation before looking for any selling bids.
Analysts stated the approval of BTC Spot ETF is starting to look assured. The time horizon might be weeks or months. If bulls regain control and drive the prices above $30400, the next target for the price might be the major resistance of $31500.
Will WBTC Price Melt or RIse?
The cryptocurrency price has crossed the 20-day EMA negatively implying bearish pressure rising over the price. It still trades above the 50,100 and 200-day EMAs. Chaikin money flow has dropped to 0.02 from 0.36 suggesting there is weakness in the market.
RSI trades at 51.30 denoting the price is in neutral territory facing equal pressure from bulls and bears and also the chances of consolidation. The bollinger bands have also contracted hinting low volatility in the market.
Conclusion
The market structure and price action of Wrapped Bitcoin is in an indecisive state as the price is currently stuck in the consolidation zone ranging between $29800 and $31500. Technical parameters suggest there is an increased participation of bears in the market. Traders should wait for proper confirmation before looking for selling bids as price has been in a bullish trend.
Technical levels
Major support: $28300 and $26300
Major resistance: $31500 and $32100
