WBTC Price Analysis: Is WBTC Price in a Consolidation Channel?

• The WBTC price is currently trading at $28265.2 while seeing a change of 61% in 24-hour trading volume.

• The WBTC price is observing a decline of 0.23% in the last 24 hours.
• Wrapped Bitcoin can make a bearish correction in the near future.

WBTC recently broke out of its bear trend and is now getting support from strong buyers. The price is forming long green candles and short red ones, which indicates that the bulls are currently dominating the price action. The price is presently trading in the oversold levels, according to the oscillators, which suggest that the WBTC price can witness a bearish correction.

The price, after making a strong bearish candle pattern following rejection from the 100 MA in early November has made a narrow consolidation. The price moved within a narrow range for nearly two months after which it made a breakout in early January with a strong momentum where it gained more than 25% in a bullish rally. After making a bearish correction, the WBTC price started trading on a strong bull trend.

WBTC price trading under the supply zone on the (Daily Timeframe)

Source: WBTC/USDT by TradingView

After finding support from the 100 MA which was trading just above the 200 EMA, the WBTC price made a bullish hammer pattern and started moving in an extremely bullish trend where it gained 43%. The price is currently moving under an ascending consolidation channel making a flag and pole pattern.

The flag and pole pattern is a bearish indicator. This pattern is often observed before the price makes a bearish move. This pattern can also be observed in the historical price action where after making an ascending consolidation channel, the price took a downward correction as shown in the illustration above.

Technical Analysis ( 1 Day Timeframe )

Source: WBTC/USDT by TradingView

The RSI line is taking divergence from the ongoing price action. The WBTC price is making higher high and higher low patterns trading on an uptrend, where the RSI line is making a lower high and lower low pattern. This pattern is often observed before the change of trend. The current RSI value is 61.33 points, which is facing resistance from the 14 SMA trending just above the RSI line, around 63.05 around the overbought level.

Conclusion

According to our analysts, the oscillators and price action are showing bearish indications although the overall trend of WBTC is on a bull trend. If the price faces rejection from the current levels, it can make a downfall of 20% in the coming days. Its nearest support level is the 100 EMA.

Technical Levels:

Support -$22692.0

Resistance – $28944.0

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Source