• Last Friday, Bitcoin saw a notable fluctuation around the $26K consolidation after 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.
• Historically, September hasn’t been a great month for Bitcoin’s price, but usually rebounds by the end of the month with an average 7% return in the final week of September.
Bitcoin Price Forecast For Next Week
Price Fluctuation Around $26K Consolidation
Last Friday, Bitcoin witnessed a notable fluctuation around the $26K consolidation as U.S. Federal Reserve Chair Jerome Powell’s speech on interest rate hikes and US inflation shook up 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.
Undervalued Bitcoin Network Activity
Recently, Bitcoin has been pretty stable which has left day traders looking for more action and caused a dull market mood among traders who are hesitant to open new futures contracts; open interest has dropped by $4 billion in two weeks time. However, an on-chain indicator suggests that Bitcoin is currently undervalued, making it a good opportunity to go long on BTC for next week’s trading session. The NVM ratio recently jumped to 0.52 which is considered indicative of an undervaluation according to its metric standards (a high NVM Ratio suggests overvaluation).
Historical Overview Of September Performance
Looking historically at weekly returns from week 36 to 39 of September typically starts off with negative sentiment (with one exception in 2022), however there is usually rebound by months end with an average 7% return in last week of September overall positive performance .
What To Expect Going Forward?
Bitcoin price continues to face resistance from bearish traders at upper trend line of triangle pattern signaling significant sell pressure while network activity remains positive providing room for potential increase in prices going forward .
Conclusion
The current market dynamics indicate that bitcoin may remain volatile in upcoming days as traders prepare themselves for big moves during this ‚calm before storm‘ moment . On-chain indicators suggest that bitcoin may be currently undervalued making it attractive buy option , however historical overview indicates mixed sentiment towards bitcoin’s performance during this month .