Bitcoin pulled back to over $11k earlier today on 1st August, after its price hiked to $11,029 USD a day before. With a 32% increase within the last past week, analysts still expect the benchmark cryptocurrency to still appreciate within the coming days, with expectations that it’ll revisit all-time high levels by year-end.
Bitcoin closed at $11k USD earlier on Monday, a direct 22.1% increase from the previous week. Bears tried to tug the price to $11,000 USD but the bulls, still clearly on top, and managed to push Bitcoin up, allowing it to trade sideways over the $11,500 range.
The reprieve from daily price rally is predicted as the RSI, a well-liked indicator, suggests that Bitcoin is presently “oversold”. Within the daily chart, the worth is additionally near the upper line of the Bollinger Bands. Bitcoin in the past has shown to disregard technical analysis during highly volatile price rallies.
Analysts expect the upsurge to continue particularly due to the massive BTC and Tether [USDT] inflows to exchanges within the last few days. Analytics firm Chainalysis says 130,038 BTC, worth around $1.3 Bln, are deposited to exchanges on 27th July. This is often the largest BTC inflow to exchanges within the last 134 days.
Normally, large BTC inflow suggests that traders expect a price correction so that they put-in their coins back to exchanges to convert them to USDT or fiat. But USDT inflows to exchanges have also increased. Philip Gradwell, chief economist at Chainalysis revealed that around $726 Mln USDT entered crypto exchanges earlier on 27th July. This is often the highest level of USDT inflow within the last 137 days.
This number doesn’t balance out with the 130,038 BTC inflow, but traders have more ways of shopping for Bitcoin now. While USDT is incredibly popular, with a $10 Bln market price, traders may prefer to purchase Bitcoin with other stablecoins like USDC or maybe fiat. In the United States, apps like Coinbase and Square’s Cash App permit users to shop for BTC with USD.