Bitcoin price is ‘undervalued’: Analysts see opportunity despite bearish trends

• Bitcoin’s price struggles within the $54K-$55K range, with bearish signals from RSI and MACD.
• Presto Research calls Bitcoin “undervalued,” citing record hashrate and high network security.

Amid Bitcoin’s [BTC] ongoing struggle to break free from its narrow trading range of $54K to $55K, several significant events could be influencing its price.

Among the most anticipated are the Federal Reserve’s potential rate cut, the upcoming Presidential debate, and the release of crucial U.S. economic data that tracks shifts in consumer prices and inflation.

These factors are adding layers of complexity to BTC’s price dynamics and could play a pivotal role in shaping its future movements.

As of press time, Bitcoin has risen by over 2% in the past 24 hours but remains priced at $55,396, according to CoinMarketCap.

Technical indicators confirm the bearish trend

Despite this recent gain, technical indicators suggest continued bearish pressure. The Relative Strength Index (RSI) is below the neutral 40 mark, 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

Amidst Bitcoin’s current struggles, Presto Research traders found the asset appealing at its present price. In a note released 9th of September, they described BTC as “significantly undervalued.”

In the analysis Presto analysts Peter Chung and Min Jung said, 

“Amid macro factors dominating BTC price talk lately, the market is overlooking one of the key fundamentals underpinning 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’s more to it?

This peak in hashrate often signals potential price bottoms for Bitcoin, suggesting a possible future price increase as miners expand their capacity.

Meanwhile, U.S. economic data shows weaker-than-expected job growth, though a lower unemployment rate has eased concerns about an imminent 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 that trend will continue (in fact, the availability of spot ETF means we are in a much better setup than ever before), BTC seems grossly undervalued at the moment.”

Lucy Hu, senior analyst at Metalpha, echoed this sentiment in a statement saying, 

“We expect the crypto market will remain highly volatile leading to 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) is set for release on 11th September, followed by the Producer Price Index (PPI) figures on 12th September.

Additionally, with former President Donald Trump and Vice President Kamala Harris preparing for an upcoming debate, the cryptocurrency market could see further volatility.

Given the significant role of crypto in this election cycle, these developments could influence BTC’s price movements and investor sentiment.