Analyst Predicts Bitcoin (BTC) Shortage If US CPI Numbers Surprise
Bitcoin (BTC), the world’s largest cryptocurrency, came under pressure on Tuesday, May 14, falling 1% and falling below $62,000 amid concerns about US macroeconomic data. According to CoinGlass data, more than $100 million in Bitcoin long positions have been liquidated in the last 24 hours.
Is Bitcoin Short Closing Soon?
HODL15Capital recently shed light on potential market trends by providing insight into Bitcoin’s on-chain activity. According to observations, those holding less than 1 BTC continue to sell, indicating a consistent trend. However, a notable improvement emerged, with the group holding 100 or more BTC recording clear negative activity; This is a rare occurrence lately.
HODL15Capital speculates that hedge funds are involved, suggesting that some may short Bitcoin in anticipation of negative Consumer Price Index (CPI) numbers due to launch. If this speculation is true, a subsequent short squeeze could lead to a significant market reaction characterized by a rapid increase in Bitcoin prices.
All eyes are currently on the US CPI figures, which are scheduled to be released on Wednesday. Capital.com senior market analyst Kyle Rodda said:
However, popular Bitcoin analyst Will Woo believes it will not take long for global liquidity to restart by the end of the year.
Bitcoin analyst Willy Woo detected an upward trend in global liquidity and likened it to the formation of an ascending triangle. He predicts an expected breakout from this pattern before October 2024, signaling potential bullish momentum for BTC. Woo’s analysis suggests that the period through 2025 could be historic for Bitcoin.
BTC Network and Whale Activity
As of the moment the article was published, Bitcoin price is trading at $61,915 with a market value of $1.2 trillion. However, the Bitcoin network and whale activity continue to show worrying signs.
According to Santiment’s insights, there is a significant decline in Bitcoin’s network activity. At the same time, Bitcoin whales are showing signs of decreasing activity, as evidenced by the decline in large transactions.
Santiment suggests that issues such as outages and withdrawal freezes on platforms like Coinbase have exacerbated this sentiment. Santiment reported that current FUD could reach levels significant enough to trigger a recovery in the near future.
✓ Share:
Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Analyst #Predicts #Bitcoin #BTC #Shortage #CPI #Numbers #Surprise
