Last Update: October 21st, 2021

Wrapped Bitcoin (WBTC) Past Price Analysis:

The Wrapped Bitcoin was created by a new ERC-20 token project designed by Bitgo, Kyber network, and Ren in January 2019. Wrapped Bitcoin originated mainly as a collaborative project between the major protocols in the DeFi ecosystem.

At the time of its launch, the creators of WBTC said that the primary purpose of this platform was to drive additional liquidity into the crypto ecosystem. Since the beginning of the project in January, it has reached millions of dollars in a brief period. The project has been controlled by a Decentralized Autonomous Organization (DAO) called the WBTC DAO. At its peak, Wrapped Bitcoin hit an all-time high around $64,565.23 on Apr 14, 2021.

Conversely, it hit an all-time low of $3,139.17 on Apr 02, 2019. If talking about its previous 7-day price analysis, Wrapped Bitcoin traded between $33,621.06 / $35,422.89.

At this moment, Wrapped Bitcoin price is currently trading at $34,854.17 with a 24-hour trading volume of $203,398,995. The price of Wrapped Bitcoin rose by 0.26% in the last twenty-four hours. The current market ranking is #17, with a live market cap of $6,844,496,732. Wrapped Bitcoin has a circulating supply of 196,375 WBTC coins, and the max supply is not available.

Wrapped Bitcoin (WBTC) Introduction:

Wrapped Bitcoin WBTC is a token that simply represents BTC in the Ethereum blockchain. It is an ERC-20 token. BTC fully backs each WBTC at a 1:1 ratio. The major purpose of WBTC is to bring more liquidity and stability of BTC into the crypto ecosystem.

With this aim, WBTC drives greater liquidity to the Ethereum ecosystem, including decentralized exchanges (DEXs) and financial applications. The most of trading volume takes place on centralized exchanges with Bitcoin in recent times. Thus, WBTC brings Bitcoin’s liquidity to DEXs, making it possible to use Bitcoin for token trades.

How does WBTC work?

There are four ways associated with the wrapped BTC ecosystem:

1) Custodians – These organizations hold the multiple assets involved in the wrapped token. In the account of WBTC, the underlying assets are being held by BitGo.

2) Merchants – The merchants regulate the distribution of the wrapped tokens. The wrapped tokens can be issued or burned by them.

3) Users – The other financial transactions associated with the wrapped tokens in the Etherum network are held and performed by the users.

4) WBTC DAO Members – WBTC DAO members are responsible for governing the custodians, users, and merchants. DAO members also authorize any contract changes along with the addition and removal of custodians.

Recent Changes in the WBTC Price

WBTC Live Chart

We will represent the comprehensive WBTC price prediction and forecast that provide a better insight into its current market situation, WBTC market capitalization, and future expectations concerning the price action. It will help to understand what’s going on in the Crypto Market right now. We have been doing our best to provide accurate price forecasts for a wide range of digital coins, including Wrapped Bitcoin. We update our predictions daily with the help of historical data and using a combination of linear and polynomial regressions.

Even after all the analysis, no one can predict the prices of cryptocurrencies with total certainty. So, it is important to understand that the WBTC price predictions, which we will provide, work only to suggest possible price development and are not intended to be used as investment advice.

According to our forecast, the long-term Wrapped Bitcoin price is expected to surge by 150% in one year and have an almost 750% surge by 2026 from its last closing price of $33,345.

Advantages and disadvantages of wrapped bitcoin:

We are going to highlight many benefits of Wrapped Bitcoin:

1) Ethereum integration. Ethereum is the biggest network for dApps. As per the State of the dApps, it’s home to about 3,000 decentralized applications. These become available for Bitcoin users with the help of Wrapped Bitcoins.

2) Liquidity and scalability. Integrating Bitcoin liquidity into Ethereum’s network tends to help fill the gap between DeFi platforms, which may lack the necessary liquidity for executing fast transactions. Since WBTC works in the Ethereum network directly, rather than Bitcoins, transactions with WBTC are more durable and more affordable.

3) WBTC staking. This popular DeFi functionality is now available for BTC users. Users can lock their Wrapped BTCs in a smart contract for a predefined time in exchange for rewards.

On the opposite side:

Sensitivity of WBTC to centralization: They are sensitive to centralization because they depend on the issuing platform. The issue appears because wrapping cannot be performed automatically by a smart contract on the Ethereum blockchain but is managed through a central program. This helps to open the door to manipulation and undermine the decentralization principle of the blockchain industry.

WBTC/USD has exhibited a strong bullish bias since July 2021, surging from $29,150 to the $51,000 level. On the weekly time-frame, WBTC/USD has closed a series of bullish engulfing and three white soliders patterns above the 32,382 level, extending a buying trend in the coin. On the higher side, the WBTC/USD coin’s immediate resistance stays at the 51,000 level, and a continuation of a bullish trend could lead the coin towards the next resistance level of 64,091 level.

It looks like the WBTC/USD is likely to face major resistance at the 51,000 level and the coin is trying to close the tweezer’s top pattern. If the weekly timeframe closes at a tweezers top, then there’s likely to be a bearish correction in the coin. WBTC/USD will likely find the next support at 41,215 and 25,900 levels on the lower side. The leading indicators like RSI and MACD are staying in the buying zone; therefore, the odds of a bullish bias remain strong only in case of a 51,000 breakout.

WBTC/USD – Weekly Time-frame – Three White Soldiers 

On the higher side, the coin is likely to face resistance at the 51,000 level, and that’s the same level that has worked as a support for WBTC/USD in the past. If WBTC manages to cross over this level, the next resistance will be around 58,990 and 64,091 levels. In the longer run, the violation of the 64,091 level could lead the wrapped Bitcoin price back towards 72,800.

Good luck!