Prominent trader Jake Wujastyk recently used Twitter to discuss the significance of the all-time high anchored volume-weighted average price (VWAP) zone for Bitcoin, stating that it is still “a crucial resistance level.”
Based on both price and volume, the VWAP, a trading benchmark, determines the average price at which a currency or securities has traded over the course of the day.
In response to a query from another trader on his chart analysis, Wujastyk explained the distinction between the VWAP’s zone and its real value.
He pointed out that although Bitcoin was above the real VWAP in his earlier analysis, giving positive signs, it was still below the ATH VWAP barrier in the revised chart.
His prior analysis was based on a weekly chart, but the most current one is based on a monthly chart. This disparity results from the different periods.
Due to worries over the Curve decentralised finance network, the price of bitcoin has been volatile. In just one day, it dropped 1.5% and fell below its 50-day moving average, indicating a short-term negative trend.
Future events, such as a ruling by a federal court approving Bitcoin ETFs and further uses for the Bitcoin blockchain, may raise the price of the cryptocurrency, nevertheless. These events imply that, notwithstanding the present downward trend, the digital asset market requires cautious optimism.
The current price decline indicates a probable negative short-term trend for Bitcoin, according to Katie Stockton of Fairlead Strategist. This is consistent with the cryptocurrency’s struggles at the all-time high VWAP barrier and points to a potential danger towards the next support level, which is approximately $26,700.
