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- 1 Wrapped bitcoin price is currently trading at $29278 while witnessing a loss of -0.35% during the intraday session.
- 2 WBTC price has slipped below 20 and 50-day EMAs.
- 3 The year-to-date return of Wrapped Bitcoin is 77.30% while the weekly return is -1.78%.
WBTC price was in an uptrend since the middle of June after the announcement of BlackRock, filing for Bitcoin Spot ETF. The cryptocurrency surged approximately 29% from the support level of $25000.
After the upsurge, the price entered into a consolidation zone ranging between $29800 and $31500. The price struggled to close above $32000 but was not successful in doing so.
Wrapped Bitcoin consolidated for more than one month. Recently, the candle of 23 July closed below the $30000 level which provided a slight confirmation regarding the bearish move. On 24 July, the price finally gained bearish momentum and shattered the support level of $29800.
Reason For Wrapped Bitcoin Drop
The WBTC price drop was due to centralized exchange BTC inflows showing a large inflow of funds to a centralized exchange. On July 24, BTC whale exchange inflows recorded a one-year high of more than 40% of total volume which affected the WBTC price.
A higher positive net inflow of deposits to centralized exchange indicates a rise in selling pressure and results in a price drop.
Recently, the Wrapped bitcoin price formed support at $29130 and regained momentum but the price faced rejection from the $29692 level. The past candle has not been able to close above $29500 indicating the strong presence of bears.
If bears can push the price below $29130, there is the possibility that the price might melt to $28300 causing a downfall of roughly 2.84%. On 26 July, a whale dumped 150 Wrapped Bitcoin worth about $4.36 Million (approximately) as stated by blockchain tracker, Lookonchain.
The market capitalization of Wrapped Bitcoin is up by 0.02% to $4,735,827,224. The 24-hour trading volume has also increased by 38.82%. The price is down 56.28% from the all-time high of $67,011 and up 799.82% from the all-time low of $3330.12.
Will WBTC Price Further More?
The cryptocurrency price slipped below 20 and 50-day Exponential Moving Averages (EMAs), indicating a rise in bearish momentum. Chaikin money flow score has dropped drastically to -0.30 suggesting an outflow of capital from the market and strong weakness. CMF has been trading below the 0 mark since 20 July.
The Relative Strength Index has also dropped below the 50 mark and currently trades at 44.80 suggesting bearish momentum in the price. The Bollinger bands have also started to expand indicating rising volatility in the market.
The price is currently headed toward the lower band of Bollinger which resides at $28792 after rejecting the 20-day SMA of Bollinger.
Conclusion
The market structure and price action turned bearish after the price broke the support level of $29800. Technical parameters are favouring the selling side but traders should wait for the price to close below $29130.
Technical levels
Major support: $29130 and $28300
Major resistance: $31500 and $32100
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.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
