On Tuesday, May 14, the world’s largest cryptocurrency, Bitcoin (BTC), confronted downward strain, experiencing a 1% decline and falling beneath $62,000. This drop was attributed to considerations surrounding US macroeconomic data. According to CoinGlass knowledge, over the previous 24 hours, greater than $100 million price of Bitcoin lengthy positions had been liquidated.
Bitcoin Short Covering Soon?
HODL15Capital lately offered insights into current Bitcoin on-chain exercise, shedding mild on potential market tendencies. As per the observations, holders of lower than 1 BTC have continued promoting, marking a constant pattern. However, a notable growth emerged because the cohort holding 100 or extra BTC recorded a internet detrimental exercise—a rarity in current instances.
HODL15Capital speculates on the involvement of hedge funds, suggesting that some could also be shorting Bitcoin in anticipation of unfavorable Consumer Price Index (CPI) numbers due for launch. If this hypothesis holds true, a subsequent quick masking may result in a big market response, characterised by a fast surge in Bitcoin costs.
If hedge funds are shorting BTC in anticipation of unhealthy CPI numbers tomorrow, the quick masking can be spectacular
— HODL15Capital 🇺🇸 (@HODL15Capital) May 15, 2024
All eyes are present on the discharge of the US CPI numbers scheduled to occur later immediately 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 in style Bitcoin analyst Will Woo believes that it’ll not be lengthy till world liquidity kicks in once more by the top of the 12 months.
Bitcoin analyst Willy Woo has recognized a bullish sample in world liquidity, likening it to an ascending triangle formation. He predicts an anticipated breakout from this sample earlier than October 2024, signaling potential bullish momentum for BTC. Woo’s evaluation means that the interval main as much as 2025 could possibly be historic for Bitcoin.
Global liquidity forming a bullish ascending triangle.
Expected breakout earlier than Oct 2024.#Bitcoin 2025 can be one for the document books. pic.twitter.com/5WRsjWfUPU
— Willy Woo (@woonomic) May 15, 2024
BTC Network And Whale Activity
As of press time, the Bitcoin price is buying and selling at $61,915 with a market cap of $1.2 trillion. However, the Bitcoin community and whale exercise proceed to point out a regarding signal.
According to insights from Santiment, Bitcoin’s community exercise is experiencing a notable decline. At the identical time, the Bitcoin whales are displaying indicators of diminished exercise, as evidenced by a lower in giant transactions.
#Bitcoin community exercise continues to say no. More importantly, $BTC whales appear to be taking a breather, with the variety of giant transactions additionally lowering, as proven by knowledge from @santimentfeed! pic.twitter.com/gaSaep3JoR
— Ali (@ali_charts) May 14, 2024
Santiment means that points equivalent to outages and withdrawal freezes on platforms like Coinbase are exacerbating this sentiment. The present FUD might attain ranges vital sufficient to immediate a rebound within the close to future, experiences Santiment.
The introduced content material might embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability to your private monetary loss.
