Bitcoin, the biggest cryptocurrency, faced pressure on May 14, slipping below $62,000 as worries about US economic data grew. More than $100 million in Bitcoin long positions were liquidated in the past day, according to CoinGlass data.

Recent insights from HODL15Capital shed light on Bitcoin's on-chain activity. While holders with less than 1 BTC continued selling, those with 100 or more BTC showed rare negative activity, hinting at possible hedge fund involvement in shorting Bitcoin ahead of the release of the Consumer Price Index (CPI) numbers.

Market attention is now on the US CPI report due later on Wednesday. Kyle Rodda, a senior market analyst at Capital.com, emphasized the importance of the report in influencing market sentiment.

Bitcoin analyst Will Woo expressed optimism, foreseeing a resurgence in global liquidity by the end of the year, with a potential breakout expected before October 2024, signaling bullish momentum for BTC.

Despite Bitcoin trading at $61,915 with a market cap of $1.2 trillion, concerns arise from declining network activity and reduced whale activity, as reported by Santiment. Issues like outages and withdrawal freezes on platforms like Coinbase contribute to the fear, potentially prompting a rebound in the near future.

In conclusion, with the looming US CPI data release, analysts predict a potential short covering in the Bitcoin market, while also foreseeing bullish momentum driven by global liquidity in the coming months. However, concerns persist regarding declining network activity and whale involvement, suggesting a cautious outlook for the cryptocurrency in the near term.