Wrapped Bitcoin Price Prediction: wBTC Bullish Outlook To $13,000

20 Oct, 2020 Updated 20 Oct, 2020

By John Isige

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

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Wrapped Bitcoin massive growth in 2020 gives insight into the potential of the DeFi ecosystem.

WBTC is in the hands of the bulls but needs a boost above the ascending parallel channel.

The decentralized finance (DeFi) ecosystem has opened both Bitcoin and Ethereum markets to a myriad of opportunities. For instance, Wrapped Bitcoin (wBTC) is essentially an ERC-20 tokens on Ethereum token but represents the value of the flagship cryptocurrency.

According to Long Hash, Wrapped Bitcoin’s market cap soared above the 1 billion market in October. Intriguingly, the token’s remarkable performance is illustrated in the 27,830% year-to-date growth.

wBTC is an ERC 20 token on the Ethereum blockchain that represents the value of #Bitcoin.

The market cap of Wrapped Bitcoin hit $1.2 billion in October and is up 27834% year-to-date. 👇 https://t.co/jezuV0yUiU

— LongHash Data (@longhashdata) October 20, 2020

The growth of wBTC is a bullish indicator for the DeFi sector in 2020. In addition, it shows that Bitcoin still has dominance in terms of tokenized digital assets. It is barely two years since the launch of Wrapped Bitcoin but ranks among the top DeFi tokens. According to Long Hash:

“The demand for wBTC primarily comes from its compatibility with DeFi protocols on Ethereum. Since Bitcoin cannot be directly sent to the Ethereum blockchain, Bitcoin users have to convert BTC to wBTC to gain access to DeFi services running on Ethereum.”

Meanwhile, Wrapped Bitcoin is trading at $11,730 at the time of writing. The token has been building an uptrend within an ascending parallel channel as observed on the chart. Glancing upwards, the DeFi token is trading must rise above the channel resistance, give buyers an opportunity to shift their focus to $12,000.

wBTC/USD 4-hour chart

The Moving Average Convergence Divergence (MACD) hints that buyers are relatively in control. In other words, it is doubtful a major reversal can come into picture in the near term. Potential action past $12,000 might boost the token towards yearly highs. On the downside, support is envisaged at the 50-day SMA, the middle boundary of the channel and $11,200.

Wrapped Bitcoin Intraday Levels

Spot rate: 11,730

Relative change: -33

Percentage change: -0.3%

Trend: Bullish bias

Volatility: Low

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.