Bitcoin ‘bear trap’ sees BTC price near $20,000 as daily gains top 9%
Bitcoin (BTC) delivered several surprises on October 14 as the reaction to macro triggers saw a sudden rise above $20,000.
Stocks, crypto smoke shorts
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to one-week highs, gaining nearly $2,000 in hours.
After the US consumer price index (CPI) for September came in above expectations, an initial crypto rout put the bulls on edge, but the pain was short-lived.
Bitcoin eventually ran higher than pre-CPI levels, following stocks that were described such as delivering the “biggest bear trap of 2022.”
“That has to be the biggest bear trap I’ve seen so far,” the popular Twitter trading account Stockrocker reacted:
“Even I was starting to feel quite bearish.”
Bitcoin thus continued that volatility – and liquidations – came as the spot price bounced around an established trading range.
Popular Twitter Analytics Account On-Chain College noted that liquidations in a single hour of the day were the highest on these timeframes in over a month.
Data from monitoring resource Coinglass put total BTC liquidations at $116 million in the 24 hours at the time of writing. Cross-crypto liquidations totaled $327 million.
While it failed to regain the $20,000 mark, Bitcoin succeeded in turning traders’ outlook to the positive side.
Analyzing chart behavior stretching back to 2019, Credible Crypto argued that the signals were there for an extended upside breakout.
“Our last two big impulses were both preceded by about 120 days of relatively low volatility consolidation before they began,” he summarized:
“It should be boring – that’s part of the process. The more boring it gets, the better it is for the upcoming expansion.”
Future Bottom Trader: CPI Movement ‘Isn’t It’
Attention was thus directed to whether the markets could maintain the status quo at the end of the week.
Related: Why Is The Crypto Market Down Today?
In a sign of potential trouble, the US dollar index (DXY) started to claw back lost ground on the day in what could yet take the momentum out of the risk-asset rally.
Summing up the situation, popular trader Roman said that while it paid off to be “macro bearish”, there was no reason to ignore the signs of what should be a temporary relief rally.
“Yes, I’m macro bearish, but this pullback is not,” part of a Twitter thread read:
“There is bullish divergence on each higher time frame and DXY has bearish divers. USDT.D also rejected resistance. Small brain investors are shorting the bottom again.”
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