It’s losing value, and some analysts predict a sharp decline to $54,000. CME The volume of purchases and sales of Bitcoin futures has decreased compared to the period before the release of the U.S. Consumer Price Index (CPI) data. Furthermore, the market isn’t as steady as it once was.
Its value dropped 4% because of the most recent CPI report from the U.S. Bureau of Labor Statistics (BLS). It is now hanging on to a weak support level at $58,000. The Core CPI stayed at 3.2% in the report, and it was now only 2.9% a year.
This news didn’t go over well with the Bitcoin market, and it dropped below the $60,000 mark. People thought the Federal Reserve might lower rates in September because of this.
This drop hurt a lot of other big coins too. There was a 4% drop in Ethereum (ETH), a 3.1% drop in Solana (SOL), and a 1.6% drop in Ripple (XRP).
As per Coinglass, the amount of money available to buy CME Bitcoin futures dropped by 5%, to $8.36 billion, after the CPI report. This drop in OI shows that traders no longer think the market will go up, and many have closed their accounts rather than risk a comeback. Bitcoin’s price often dropped even more when CME futures OI went down in the past.
IOMAP, which stands for “Into the Block In/Out of the Money Around Price,” shows that an important level between $54,955 and $56,695 will keep Bitcoin’s price stable. About 874,500 addresses bought 585,780 BTC in this price range, creating a demand zone that could push Bitcoin toward $70,000 if it stays in place.
But between $63,728 and $65,468, many people are pulling their money back. During that time, 1.61 million addresses bought 944,510 BTC. To prove that those who think Bitcoin will go down are wrong, it would have to break through this area of support. This would make it possible for prices to rise to new all-time highs.
Bitcoin Faces Short-Term Challenges As Support Levels Weaken
Bitcoin quickly regained the $58,000 level of support, but keeping the price going up has been hard. When the RSI goes below 30, it moves toward the oversold area. In other words, the drop planned to $54,000 might happen before a big rise occurs.
Bitcoin’s short-term support is at $57,000 on the daily chart. This is where it will move next. If prices fall below this level, they could drop even more quickly to $54,000. The 200-day Exponential Moving Average (EMA) at $59,454 could be used as support, making it less likely that the price will go down and more likely to turn above $60,000.
Bitcoin’s short-term path will depend heavily on its ability to stay above key support levels and overcome hurdles during these challenging times.
