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WBTC Technical Analysis: Fib Retracement Indicates that the Trend Support at $395,74.75 to Bounce Back

source-logo  cryptoknowmics.com 07 October 2021 09:59, UTC

Wrapped Bitcoin is an Ethereum token. It was launched in January 2019.  The idea behind using WBTC is to enable Ethereum users to participate in its Decentralized Finance(DeFi).  The value of one WBTC is always equal to the value of one BTC. The wBTC technical analysis is as follows:

WBTC Past Performance

WBTC opened at $41532.42 on September 30, 2021. The price rallied over the past week. On 6th October 2021, WBTC closed at $55,372.46. Thus, the price increased by 33.3% over the week.

Source: https://www.tradingview.com/x/rB158B6I/

WBTC Technical Analysis

WBTC is forming a steep slope with the prices giving higher lows every day for the past week. The price has risen high enough to break the resistance at $52,903.99, which is an indication for the bull run to continue. Currently, the price is retesting the breakout level. After the retest, we can expect the price to bounce back.

WBTC is trading at $54,695.56, which is 1.15% down. This can be a signal that the trend may reverse itself.

OBV has not changed very much, indicating that the buying and selling pressures were fairly balanced. For a clear call, traders may wait for OBV to show some clear indications.

RSI has just touched the boundary of the overbought region at 70%, but then reversed and is currently at 69.5%. This is a bearish signal, and traders may be ready to take a short position if the price falls.

The lagging indicator MACD shows the fast line crossing over the slow line, and both heading into the positive region. This confirms last week’s uptrend. There is no divergence with the price chart, which makes a neutral call.

Day-Ahead and Tomorrow

Fib retracement indicates that the trend took support at $39,574.75 to bounce back. WBTC then took support at the $47802.67 level to rise even further. It is now expected to reach the FIB resistance level of $61,116.46.

Thus, the indicators are more or less neutral because the price has broken the resistance level at $52,903.99, but now it is showing some bearish signals. Hence, traders may take a position with the target at $59,612.86 by keeping the stop loss at $48,598.25.

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