Bitcoin (BTC) provided more surprises on October 14, as the reaction to a macro trigger led to a sudden run towards $20,000.
Stocks and cryptocurrencies are short
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair climbing to weekly highs, gaining nearly $2,000 within hours.
After the Consumer Price Index of the United States (CPI) for September came in above expectations, initial cryptocurrency rout put bulls on edge, but the pain was short-lived.
Bitcoin finally broke above pre-CPI levels, tracking stocks that were Put down as offering the “biggest bear trap of 2022”.
“This has got to be the biggest bear trap I’ve seen so far. “, yes answered the famous trading Stockrocker Twitter account:
“Even I was starting to feel quite bearish. »
As such, Bitcoin continued to fluctuate and sell off, as the spot price moved around an established trading range.
The College’s famous Twitter analytics account is On-Chain noticed that day’s one-off liquidations were the highest on those time scales for over a month.
According to data from tracking resource Coinglass, total liquidations of BTC were $116 million in the 24 hours prior to the writing of this article. Cross-cryptocurrency liquidations totaled $327 million.
Despite the fact that they failed to reclaim the $ 20,000 mark, bitcoin managed to shift the attitude of traders to the bullish side.
Analyzing the behavior of the charts extending to 2019, Crypto Credible valorize that the signs were there for an extended bullish breakout.
“There was about 120 days of relatively low volatility consolidation before our last two major spurts started,” he summarized:
“It’s supposed to be boring, it’s part of the process. The more boring, the better for future expansion. »
Traders Expect Lower Price: CPI Move ‘Will Not Last’
The focus was therefore on whether markets could preserve the status quo at the end of the week.
Also read: Why is the Cryptocurrency Market Down Today?
In a sign of potential trouble, the US Dollar Index (DXY) has started to regain lost ground on the day, which could further break the momentum of the rally in risk assets.
Summing up the situation, well-known trader Roman said that although it pays to be “macro-bearish”, there is no reason to ignore the signs of what should be a temporary relief rally.
“Yes, I’m a bearish macro, but this is not the downside. “, can we read as part of a Twitter thread:
“All the upper time frames have a bullish divergence and the DXY has a bearish divergence. USDT also rejected resistance. Tiny investors are shorting the bottom again. »
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