) brought even more surprises on October 14 when macrocatalyst reaction unexpectedly surged to $20,000.
BTC/USD Hourly Candlestick Chart (Bit Mark). Source: Trading View
Stocks, crypto shorts
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD climbed to a weekly high, gaining nearly $2,000 in an hour.
After the US CPI printout for September beat expectations, the cryptocurrency’s initial setback left speculators nervous, but the pain was short-lived.
Bitcoin has finally risen above its previous CPI levels after stocks were dubbed the “biggest bear trap of 2022.”
Popular trading account Stockrocker responded on Twitter: “This must be the biggest bear trap I’ve ever seen”:
“I even felt sad.
S&P 500 hourly candlestick chart. Source: TradingView
Thus, Bitcoin supported volatility – and liquidation – as the spot price fluctuated around a certain trading range.
The popular On-Chain College analytics Twitter account noted that the one-hour-per-day close was the highest in those time periods in more than a month.
Data from monitoring resource Coinglass has estimated a total BTC liquidation of $116 million in 24 hours at the time of writing. Cryptocurrency clearing amounted to $327 million.
Cryptocurrency filtering chart. Source: Coinglass
Although it failed to recover the $20,000 mark, Bitcoin managed to change traders’ forecasts for the better.
Analyzing chart behavior since 2019, Credible Crypto claimed that there were signals for an extended bullish breakout.
He summarized: “Our last two major drivers were preceded by about 120 days of relatively low volatility consolidation before they kicked in,” he summarizes:
“It has to be boring – it’s part of the process. The more boring, the better for the upcoming expansion.”
Annotated BTC/USD chart. Source: Credible Crypto/Twitter
Trader on the next day: the consumer price index has shifted “to the right”
Therefore, the focus is on whether the markets can maintain the status quo at the end of the week.
Related topics: Why is the cryptocurrency market falling today?
A sign of potential trouble is that the US dollar index (DXY) is starting to rebound gains lost during the day, which could be reinforced by a rally in riskier assets.
Summing up the situation, well-known trader Roman said that although he insisted on being “absolutely bearish”, there is no reason to ignore the signals of what should be a temporary rally.
“Yes, I have a downtrend, but this downtrend is not,” reads one of the threads on Twitter:
“There is a bullish divergence on every higher time frame and the DXY has bears. USDT.D also rejected resistance. Small-minded investors are selling the bottom again.”