Bitcoin (BTC$19,595) delivered more surprises into Oct. 14 as the reaction to macro triggers saw a sudden run at $20,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Stocks, crypto smoke shorts
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to one-week highs, gaining almost $2,000 in hours.
After the United States Consumer Price Index (CPI) print for September came in above expectations, an initial crypto rout put bulls on edge, but the pain was short lived.
Bitcoin ultimately ran higher than its pre-CPI levels, following stocks which were described as delivering the "biggest bear trap of 2022."
"That’s gotta be the biggest bear trap I’ve seen so far," popular Twitter trading account Stockrocker reacted.
Even I was starting to feel quite bearish.
S&P 500 1-hour candle chart. Source: TradingView
Bitcoin thus kept volatility — and liquidations — coming as spot price bounced around an established trading range.
Popular Twitter analytics account On-Chain College noted that liquidations in a single hour on the day were the highest on those timeframes in over a month.
Data from monitoring resource Coinglass put total BTC liquidations at $116 million in the 24 hours to the time of writing. Cross-crypto liquidations totaled $327 million.
Crypto liquidations chart. Source: Coinglass
While failing to reclaim the $20,000 mark, Bitcoin was succeeding in flipping traders’ outlook to the bullish side.
Analyzing chart behavior stretching back to 2019, Credible Crypto argued that the signals were there for an extended upside breakout.
“Our last two major impulses were both preceded by around 120 days of relatively low-volatility consolidation before they began,” he summarized.
It's supposed to be boring- it's part of the process. The more boring it gets the better it is for the coming expansion.
BTC/USD annotated chart. Source: Credible Crypto/ Twitter
Trader on future bottom: CPI move "isn't it"
Attention thus focused on whether markets could preserve the status quo at the end of the week.
In a sign of potential trouble brewing, the U.S. dollar index (DXY) began clawing back lost ground on the day in what could yet take the momentum out of the risk asset rally.
Summarizing the situation, popular trader Roman said that while it paid to be "macro bearish," there was no reason to ignore the signs of what should be a temporary relief rally.
"Yes I am macro bearish but this move down isn’t it," part of a Twitter thread read.
There’s bullish divergence on every higher timeframe and the DXY has bear divs. USDT.D rejected resistance as well. Tiny brained investors shorting the bottom yet again.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks

XRP eyes recovery but derivatives market stalls progress
Ripple's XRP is up 2% in the early Asian session on Thursday following rising accumulation among investors and a potential bottom signal in the MVRV Ratio.

Ethereum could see a boost as Cboe files for 21Shares to begin staking within its ETH ETF
Ethereum (ETH) could be set for increased demand in the coming months following Cboe BZX 19b-4 filing with the Securities & Exchange Commission (SEC) to enable staking for the 21Shares Core Ethereum exchange-traded fund (ETF).

Bitcoin and crypto recovers from CPI data as Trump pushes Russia–Ukraine diplomacy
Bitcoin (BTC) and the crypto market saw slight gains on Wednesday after President Donald Trump's resolution calls with Russian President Vladimir Putin and Ukraine's President Volodymyr Zelenskyy.

Ethereum Price Forecast: ETH eyes $3,000 as Trump and Putin agrees to begin negotiations on ending Ukraine war
Ethereum (ETH) saw a 3% gain on Wednesday following United States (US) President Donald Trump's agreement with Russian President Vladimir Putin to begin negotiations to end the Russian-Ukraine war.

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.