Bitcoin network fundamentals have never looked better, as optimism trickles back when it comes to BTC price strength in a key Fed rate decision week.
Bitcoin (BTC) starts the new week with optimism as traders greet the first green weekly candle in over a month.
BTC price strength appears to be gradually improving after a weak August and start of September, with BTC/USD climbing toward $27,000.
A solid weekly close provides the backdrop to what promises to be an interesting few days, which will include a key United States macroeconomic event as a potential volatility driver.
The U.S. Federal Reserve will meet to decide on interest rate policy, and any surprises could have significant repercussions for risk assets, including crypto.
Elsewhere, things are looking promising for Bitcoin, with network fundamentals set to surge higher to new records.
Strength “under the hood” is similarly being reflected in hodler behavior, with wallet numbers continuing to shoot higher regardless of BTC price action.
Cointelegraph takes a look at these topics and more as Bitcoin begins what is likely its most eagerly-awaited week of September.
Trader eyes BTC price “local bottom”
Bitcoin offered little volatility over the weekend, but calmer trading conditions are already being challenged into the new week, data from Cointelegraph Markets Pro and TradingView shows.
The Sept. 17 weekly close soon gave way to upside volatility, and at the time of writing, bulls are attempting to build on that foundation to crack new month-to-date highs.
Popular trader Credible Crypto thus suggested that the weekend zone could well form a “local bottom.”
“This region continues to be defended, with buyers stepping in here once again. Has the makings of a local bottom/base being formed imo,” he told X (formerly Twitter) subscribers overnight, alongside a chart of order book liquidity on the largest global exchange, Binance.
Key Events This Week:
1. Building Permits data – Tuesday
2. Housing Starts data – Tuesday
3. Fed Interest Rate Decision – Wednesday
4. Fed Press Conference – Wednesday
5. Jobless Claims – Thursday
6. Existing Home Sales data – Thursday
This week sets up the rest of 2023.
— The Kobeissi Letter (@KobeissiLetter) September 17, 2023
Explaining the likely outcome of FOMC, crypto and macro insight resource Ecoinometrics suggested that the market odds were no surprise based on Fed signals.
“There will be no rate hike at the FOMC meeting on September 20. That’s what the Fed Funds futures are pricing,” it wrote at the weekend.
“The bitcoin network hashrate is at an all time high,” Nicholas Cary, co-founder of Bitcoin data resource Blockchain.com, noted earlier this month.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
