- Bitcoin price is struggling in the $54,000-$55,000 range, with bearish signals from the RSI and MACD.
- Presto Research calls Bitcoin “undervalued,” citing record hash rate and strong network security.
As Bitcoin (BTC) continues to struggle to break out of its tight trading range of $54,000 to $55,000, there are several significant events that could influence its price.
Among the most anticipated events are the potential Federal Reserve rate cut, the upcoming presidential debate and the release of crucial U.S. economic data that tracks consumer prices and inflation.
These factors add layers of complexity to BTC price dynamics and could play a central role in defining its future movements.
At press time, Bitcoin is up more than 2% in the past 24 hours, but remains listed at $55,396, according to CoinMarketCap.
Technical indicators confirm the bearish trend
Despite this recent rise, technical indicators suggest continued bearish pressure. The Relative Strength Index (RSI) is below the neutral bar of 40, signaling potential weakness.
Additionally, the Moving Average Convergence Divergence (MACD) remains below the signal line, and the red histogram suggests that selling pressure is currently outweighing buying momentum.
Source: Trading View
Presto Research analysts offer a unique perspective
Amid Bitcoin’s current struggles, traders at Presto Research have found the asset attractive at its current price. In a note published on September 9, they described BTC as “significantly undervalued.”
In their analysis, Presto analysts Peter Chung and Min Jung said:
“While macroeconomic factors have dominated discussions about Bitcoin price lately, the market is neglecting one of the key fundamentals that underpin Bitcoin’s value: network security.”
Analysts explained that BTC hash rate hit a record high of 679 EH/s, marking an all-time high and indicating strong network security.
What else is there?
This spike in hash rate often signals potentially low prices for Bitcoin, suggesting a possible future price increase as miners increase their capacity.
At the same time, U.S. economic data showed weaker-than-expected job growth, although a lower unemployment rate eased concerns about a looming 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 think this trend will continue (in fact, the availability of spot ETFs means we are in a much better position than ever before), BTC looks grossly undervalued at the moment.”
Lucy Hu, senior analyst at Metalpha, echoed this sentiment in a statement saying:
“We expect the cryptocurrency market to remain highly volatile leading up to the next Fed meeting.”
What future for Bitcoin?
Looking ahead, Bitcoin could see notable fluctuations in the coming week due to several key events.
The August Consumer Price Index (CPI) is scheduled to be released on September 11, followed by 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 additional volatility.
Given crypto’s important role in this election cycle, these developments could influence BTC price movements and investor sentiment.
