Wrapped Bitcoin is a blockchain network that is as powerful as the bitcoin blockchain. However, a distinguishing feature of this network is that users can experience bitcoin power with the flexibility of ERC20 coins. In other words, it is the first bitcoin-backed ERC20 token. It is 100% transparent, verifiable, and community-driven. WBTC is the native token of this ecosystem and below is the technical analysis for the same.
On Jun 15, 2021, WBTC opened at $40,403.32. On Jun 21, 2021, WBTC closed at $31,662.64. Thus, in the past week, the WBTC price has decreased by roughly 22%. In the last 24 hours, WBTC has traded between $31,272.96 - $35,089.37.
Currently, WBTC is trading at $32,642.69. The price has increased from the day’s opening price of $31,662.64. Thus, the market seems bullish.
The MACD and signal lines are positive. Thus, the overall market momentum is bullish. However, a bearish crossover by the MACD line over the signal line has occurred. Moreover, both the lines are close to the zero line and may turn negative soon. Hence, we can expect a price pullback.
Currently, the RSI indicator is at 55%. It faced rejection at 47% and rose to the current level. Hence, buying pressures are slowly building for WBTC. High buying activity will push the price further up.
However, the OBV indicator has fallen steeply. Thus, selling volumes are much higher than buying volumes. In other words, the OBV indicator is giving further credence to the price pullback indicated by the MACD oscillator.
In short, when we look at all three oscillators together, we can say that the overall market momentum is currently bullish. However, a price pullback is on the anvil. We have to wait and see if this price pullback is temporary or the commencement of a bullish trend reversal.
Currently, the price is below the Fibonacci pivot point of $32,674.99. It may soon fall below the first Fibonacci pivot support level of $31,217.12. Thereafter, we have to wait and watch if the price continues to decline or starts rising again.
The price has tested and fallen below the 61.8% FIB retracement level of $32,730.83. The price may soon fall below the 76.4% FIB retracement level of $32,173.63 as well. If the price retests and breaks out of these levels by day end, then probably the price uptrend is strong enough to sustain till tomorrow. Else, the price downswing may continue tomorrow as well.