Wrapped bitcoin, a ERC-20 token which is pegged to bitcoin and is on Ethereum blockchain. WBTC token mirrors the value of Bitcoin. It is interoperable with decentralized applications built on the Ethereum network.
Wrapped cryptocurrencies help crypto assets to be used on blockchains to which they are not native. It helps in increasing the utility and liquidity of smart contract platforms and decentralized finance applications.
Wrapped bitcoin price has been in a bearish trend after the price received rejection from the $31227 level. WBTC price was in a bullish rally since the beginning of 2023, rising from the low of $16481 level.
The cryptocurrency price bullish move was halted as price received rejection from $25000 level and the correction phase started which led to a downfall of price to $20000 level. WBTC price regained bullish momentum which led to creation of annual high at $31227.3 on April 14.
WBTC Price Tumbles
Recently, price shattered the major support level of $26000 and closed below it. If the current candle gains enough bearish momentum to break the lower wick of the previous candle, there is a higher probability for the price to head toward the next support level of $24150 which would cause a downfall of approximately 5.49% in the price.
While on the other hand, if the price can form a support near $25500 level, there is a high probability for the price to retest $26000 level and might try to rise above it. The Current Bitcoin candle has moved much today indicating less volume.
Bitcoin and other cryptocurrency continued to tumble on Tuesday amid market panic over charges by the United States Securities and Exchange Commission against the world’s largest crypto exchange.
Will Wrapped Bitcoin Price Fall to $24150 Level?
Wbtc price crossed 20,50 and 100-day EMAs negatively indicating rising bearish momentum in the price. The Chaikin money flow score is 0.65 indicating still strong strength in the market and divergence with the real price as the current price is in bearish trend.
The relative strength index trades at 36.82 suggesting bearish momentum in the price and price will soon enter into the oversold zone. The bands of bollinger have contracted indicating low volatility. WBTC price has crossed below the lower band and is in the hopes of pullback or reversal. Currently, there are no signs of bullishness in the market.
Conclusion
The market structure and price action is bearish for the wrapped bitcoin price. Wbtc price needs to form a support for halting bearish momentum. The technical indicators favor the selling side. If bears can push price below the $24150 level, then Wbtc price might head toward the $20000 level.
Technical levels
Major support: $24150 and $20000
Major resistance: $26000 and $28300
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 his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/06/wrapped-bitcoin-price-prediction-wbtc-price-headed-toward-24150/