Bitcoin Price Forecast For Next Week: What’s Coming, If BTC Price Breaks Its $26K Consolidation?
- Bitcoin price witnessed a notable fluctuation around the $26K consolidation as the U.S. Federal Reserve Chair Jerome Powell’s speech on interest rate hikes and US inflation shook the crypto market.
- An on-chain indicator suggests that Bitcoin is currently undervalued, making it a good opportunity to go long on BTC for the coming week.
- September hasn’t been a great month for Bitcoin’s price historically, but typically rebounds by the end of the month.
U.S. Federal Reserve Speech Affects Crypto Market
Last Friday, Bitcoin witnessed a notable fluctuation around the $26K consolidation as the U.S. Federal Reserve Chair Jerome Powell’s speech on interest rate hikes and US inflation shook the crypto market. Jerome Powell conceded that another interest rate hike by the Federal Reserve could be on the horizon. Following this news, Bitcoin’s price dipped below $26,000 but soon rebounded. Traders are now preparing for big moves amid a ‘calm before the storm’ moment in Bitcoin’s price next week.
Network Activity Suggests Undervaluation
Lately, Bitcoin has been pretty stable, disappointing day traders looking for more action which has led to a dull market mood. Additionally, traders are hesitant to open new futures contracts, especially since open interest has fallen by $4 billion in the past two weeks. Interestingly, an on-chain indicator suggests that Bitcoin is currently undervalued making it a good opportunity to go long on BTC for the coming week. The NVM ratio recently jumped to 0.52 which is below the 0.6 level considered to indicate undervaluation. The „NVM ratio“ is a metric that looks at the relationship between logarithm of Bitcoin’s market value and square of number of its daily active users A high NVM Ratio suggests Bitcoin is overvalued while low one implies it’s undervalued The metric’s current downward trend hints at room for price increase as network activity is positive
Historical Performance in September
September hasn’t been great month for Bitcoin’s price historically Looking at weekly returns from week 36 to 39 usually starts September on down note with exception of positive event in 2022 Good news however is that typically rebounds by end of month averaging 7% return final week of September
„Calm Before The Storm“ Moment Incoming
Traders are now preparing for big moves amid “calm before storm“ moment in bitcoin’s price next week It remains be seen what happens if BTC breaks out from its current consolidation range whether move will most likely bring bull run or bearish slide
„What Is Next For BTC Price?“
Bitcoin continues face resistance upper trend line triangle pattern signaling bearish traders still selling off cryptocurrency It will interesting see break out from consolidation range result prices continuing rise or bearish slide