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The price of wrapped bitcoin once again survives a major hurdle at the sub $11,500 area. Bridging the resistance at that price level, the bulls appear to have taken charge, and market emotions now narrow towards a bullish bias in the short-term.
Thursday, August 20th 2020, 10:45 hours UTC, the price of wBTC began a bullish momentum and within a couple of hours, the relatively new cryptocurrency has broken the key resistance recently set at the $11,500 level.
As the price trembled back to test the area again, the shattered resistance later helped as a support level around 11:00 hours UTC. This further substantiated that wBTC might have set sail for greater heights.
At 11:30 hours UTC, wBTC was changing hands at $11,550 as analysis suggests further prosperous bull movement in the short term. This inbound movement promises to push wBTC to the sub $12,000 level.
This bull market represents the continuation of the gains made in around 6 months. Since the launch of the token in February, wBTC price has correlated with that of Bitcoin and gained considerably in the process.
Year-till-date, wBTC has gained around 70% and counting. This happens in spite of the ongoing hype around relatively newer alternatives like YFI.
wBTC/USD 1-Hour Price Chart
On the 1 hour chart, the relative strength indicator (RSI) line seems to be flat at the 30.0 mark. This clearly indicates that though the bulls may have taken charge, they may be in control for only a longer period of time as the RSI moves upwards.
As price the of wBTC approaches the midline 50.0 RSI level, the corresponding momentum is expected to drive prices beyond the $12,000 area.
The price is hovering somewhere below the modeling of the Bollinger band indicator. This however, may be an indicator of a potential plunge in the longer time frames. Although the general bias remains bullish.
Yesterday, Bitcoin failed to thrust towards the elevated zone and this may turn the market’s movement towards the low end of the Bollinger bottom. Further, a close below the Bollinger bottom could send wBTC/USD even lower towards $11,500.
On the other hand, a close above the midline of the Bollinger indicator points to a stronger bullish momentum and this may instigate a rally towards the $12,500 level.
If wBTC closes above that level, the price could extend the rally towards $12.500. In the possibility that the latter occurs, the price of Bitcoin may become a major influence in the longer term.