[Bitcoin Price Prediction: Why BTC May Plunge to $54,000]
Bitcoin (BTC) price fell 4% to $58,730 following the release of US Consumer Price Index (CPI) data. CPI data showed annual inflation dropped to 2.9%, with core CPI stable at 3.2%. Economists expected the Federal Reserve to cut interest rates by 25 basis points in September, but this failed to prevent the decline in Bitcoin prices.
Open interest (OI) on CME Bitcoin futures fell 5%, indicating a lack of market confidence and indicating that Bitcoin prices may fall further. Bitcoin is currently hovering between $58,000 and $64,000, with the RSI indicator pointing towards oversold territory, suggesting that the price could drop to $54,000.
If Bitcoin can break through the 200-day moving average resistance at $59,454, it is expected to rebound to over $60,000, but if it falls below the short-term support at $57,000, it may sink further to $54,000 before reversing.
