- Bitcoin bulls are firmly in control as Bitcoin trade sideways at $10,927
- BTC and USDT inflows to exchanges have increased, suggesting that traders want to accumulate more Bitcoin
- Traders have more ways to buy Bitcoin instead of just using USDT
Bitcoin pulled back to $10,905 Monday, July 27, after a price rally to $11,029 a day before. With a 20% increase in the last seven days, analysts still expect the benchmark cryptocurrency to continue to appreciate in the coming days, with expectations that it will revisit all-time high levels by year-end.
Bitcoin closed at $10,906 Monday, a 1.3% decrease from the previous day. Bears tried to pull the price to $10,565 but the bulls, still clearly in control, managed to push Bitcoin up, allowing it to trade sideways in the $10,927 range.
The reprieve from daily price rally is expected because the RSI, a popular indicator, suggests that Bitcoin is currently “oversold”. In the daily chart, the price is also 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 because of the large BTC and Tether (USDT) inflows to exchanges in the last seven days. Analytics firm Chainalysis says 130,038 BTC, worth $1.3 billion, have been deposited to exchanges on July 27. This is the largest BTC inflow to exchanges in the last 134 days.
Normally, large BTC inflow suggests that traders are expecting a price correction so they put 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 says $726 million USDT entered crypto exchanges on July 27. This is the highest level of USDT inflow in the last 137 days.
This number does not balance out with the 130,038 BTC inflow, but traders have more ways of buying Bitcoin now, reported news outlet Coindesk. While USDT is incredibly popular, with a $10 billion market value, traders may choose to buy Bitcoin with other stablecoins like USDC or even fiat. In the U.S., apps like Coinbase and Square’s Cash App allows users to buy BTC with USD.
Bloomberg has predicted Bitcoin will reach $20,000 by December 2020 while stock-to-flow model creator “PlanB” predicts $30,000 per BTC by year-end. Bitcoin advocate Max Keiser predicts the rally will put Bitcoin higher. “$28,000 is in play before we see a pullback – and then we’re heading to 6-figures,” he tweeted.