- Bitcoin’s price issues are in the $54K-$55K range, with bearish signals from RSI and MACD.
- Presto Research calls Bitcoin “undervalued,” citing record hashrate and high network security.
In the middle of Bitcoin [BTC] With the ongoing struggle to break free from the narrow trading range of $54,000 to $55,000, several key events could impact the price.
Among the most anticipated rate cuts by the Federal Reserve are the possible rate cut by the Federal Reserve, the upcoming presidential debate and the release of crucial U.S. economic data that charts shifts in consumer prices and inflation.
These factors add layers of complexity to BTC’s price dynamics and could play a crucial role in shaping its future movements.
At the time of writing, Bitcoin is up over 2% in the past 24 hours, but the price still remains at $55,396, according to CoinMarketCap.
Technical indicators confirm the bearish trend
Despite these recent gains, technical indicators point to continued bearish pressure. The Relative Strength Index (RSI) is below neutral 40, indicating potential weakness.
Furthermore, the Moving Average Convergence Divergence (MACD) remains below the signal line, and the red histogram suggests that selling pressure is currently greater than buying momentum.
Source: trading view
Presto Research’s analysts offer a unique perspective
Amid Bitcoin’s current struggles, Presto Research Traders found the asset attractive at the current price. In a note released on September 9, they described BTC as “significantly undervalued.”
In the analysis, Presto analysts Peter Chung and Min Jung said:
“Amid macro factors dominating BTC price discussions lately, the market is overlooking one of the most important fundamental factors underlying Bitcoin’s value: network security.”
The analysts explained that BTC’s hashrate has reached a record 679 EH/s, marking an all-time high and indicating strong network security.
What else is going on?
This spike in hashrate often signals a potential price floor for Bitcoin, hinting at a possible future price increase as miners expand their capacity.
Meanwhile, US economic data shows weaker-than-expected job growth, although a lower unemployment rate has eased concerns about an impending recession.
This combination of high network security and mixed economic signals presents a complex scenario for BTC and broader market trends.
They further added:
“If you believe this trend will continue (in fact, the availability of spot ETF means we are in a much better situation than ever before), BTC seems grossly undervalued right now.”
Lucy Hu, senior analyst at Metalpha, echoed this sentiment in a statement saying:
“We expect the crypto market to remain highly volatile ahead of the next Fed meeting.”
What lies ahead for Bitcoin?
Looking ahead, Bitcoin may experience notable fluctuations in the coming week due to several key events.
The August Consumer Price Index (CPI) will be published on September 11, followed by the Producer Price Index (PPI) figures on September 12.
Additionally, as former President Donald Trump and Vice President Kamala Harris prepare for an upcoming debate, the cryptocurrency market could see further volatility.
Given the important role of crypto in this election cycle, these developments could impact BTC price movements and investor sentiment.
