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 (@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
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