The world’s largest cryptocurrency Bitcoin (BTC) came under pressure on Tuesday, May 14, dropping 1% and slipping under $62,000 amid concerns over the US macroeconomic data. As per CoinGlass data, more than $100 million in Bitcoin long positions liquidated over the past 24 hours.
Bitcoin Short Covering Soon?
HODL15Capital recently provided insights into recent Bitcoin on-chain activity, shedding light on potential market trends. As per the observations, holders of less than 1 BTC have continued selling, marking a consistent trend. However, a notable development emerged as the cohort holding 100 or more BTC recorded a net negative activity—a rarity in recent times.
HODL15Capital speculates on the involvement of hedge funds, suggesting that some may be shorting Bitcoin in anticipation of unfavorable Consumer Price Index (CPI) numbers due for release. If this speculation holds true, a subsequent short covering could lead to a significant market reaction, characterized by a rapid surge in Bitcoin prices.
If hedge funds are shorting BTC in anticipation of bad CPI numbers tomorrow, the short covering will be spectacular
— HODL15Capital 🇺🇸 (@HODL15Capital) May 15, 2024
All eyes are current on the release of the US CPI numbers scheduled to happen later today on Wednesday. Kyle Rodda, a senior market analyst at Capital.com said:
“Market sentiment hinges on tonight’s US CPI report. While promising, if it were to occur and represent a more than three-year low for core CPI, a greater downside surprise would be required to dispel fears about sticky and re-anchored inflation.”
But popular Bitcoin analyst Will Woo believes that it will not be long until global liquidity kicks in again by the end of the year.
Bitcoin analyst Willy Woo has identified a bullish pattern in global liquidity, likening it to an ascending triangle formation. He predicts an expected breakout from this pattern before October 2024, signaling potential bullish momentum for BTC. Woo’s analysis suggests that the period leading up to 2025 could be historic for Bitcoin.
Global liquidity forming a bullish ascending triangle.
Expected breakout before Oct 2024.#Bitcoin 2025 will be one for the record books. pic.twitter.com/5WRsjWfUPU
— Willy Woo (@woonomic) May 15, 2024
BTC Network And Whale Activity
As of press time, the Bitcoin price is trading at $61,915 with a market cap of $1.2 trillion. However, the Bitcoin network and whale activity continue to show a concerning sign.
According to insights from Santiment, Bitcoin’s network activity is experiencing a notable decline. At the same time, the Bitcoin whales are showing signs of reduced activity, as evidenced by a decrease in large transactions.
#Bitcoin network activity continues to decline. More importantly, $BTC whales seem to be taking a breather, with the number of large transactions also decreasing, as shown by data from @santimentfeed! pic.twitter.com/gaSaep3JoR
— Ali (@ali_charts) May 14, 2024
Santiment suggests that issues such as outages and withdrawal freezes on platforms like Coinbase are exacerbating this sentiment. The current FUD may reach levels significant enough to prompt a rebound in the near future, reports Santiment.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
