TLDR:
- Bitcoin traded between $54,000 and $55,000 over the weekend
- Key events this week include a Presidential debate and U.S. economic data releases
- Some analysts consider Bitcoin undervalued due to record-high network security
- Crypto funds experienced significant outflows last week
- Bitcoin’s price movement in 2024 is being compared to 2019 patterns
Bitcoin, the world’s largest cryptocurrency, maintained a stable position around $54,000 over the weekend as investors await important economic data releases and political events in the coming week.
The cryptocurrency market is preparing for potential volatility triggered by these factors.
The U.S. Consumer Price Index (CPI) figures for August are scheduled for release on Tuesday, followed by the Producer Price Index (PPI) on Wednesday.
These economic indicators are closely watched by investors as they provide insights into inflation trends, which can influence Federal Reserve monetary policy decisions.
Adding to the week’s significance is a highly anticipated Presidential debate between Republican candidate Donald Trump and Democrat Kamala Harris on Tuesday.
Voters will be looking for policy decisions, particularly those related to the cryptocurrency industry. Trump has previously expressed intentions to make the U.S. the “crypto capital” of the world, while Harris’s aides are reportedly considering policies to support industry growth.
Despite the current price stability, some market analysts view Bitcoin as undervalued. Peter Chung and Min Jung from Presto Research noted in a Monday report that the market might be overlooking a key fundamental factor: network security.
They highlighted that Bitcoin’s hashrate, which represents the computational power securing the network, has reached an all-time high of 679 EH/s. This development suggests a robust and secure network, which they argue is not fully reflected in the current price.
However, the cryptocurrency market faces some headwinds. Bank of America reported significant outflows from crypto funds over the past week, totaling approximately $600 million. This marks the second-largest outflow in the industry’s history, indicating a potential shift in investor sentiment or risk appetite.
The U.S. spot Bitcoin exchange-traded funds (ETFs) also experienced net outflows every day last week, with two out of four trading days recording outflows exceeding $200 million. These trends suggest a cautious approach from institutional investors in the current market environment.
Some analysts are drawing parallels between Bitcoin’s current price action and its performance in 2019. Julien Bittel, head of macro research at Global Macro Investor, pointed out similarities in the price structure and consolidation phase duration.
This year’s Bitcoin price structure is starting to look eerily similar to 2019…
Take a close look at the chart – it’s almost a perfect fractal of what we saw back then.
Bitcoin has been stuck in a consolidation phase, and interestingly, just like in 2019, this consolidation… pic.twitter.com/8p6tDTIBoL— Julien Bittel, CFA (@BittelJulien) September 7, 2024
This comparison has led to speculation about a potential upcoming “inflection point” that could lead to significant price movement.
In the short term, traders are closely watching key support levels. The $54,500 mark is seen as a critical threshold, with some analysts suggesting that maintaining this level could lead to upward momentum. Resistance is noted around $55,500, where additional sell orders have been placed.
Source: https://blockonomi.com/bitcoin-btc-price-stable-at-54000-before-cpi-data-and-presidential-debate/