Bitcoin 'bear trap' sees BTC price near $20K as daily gains top 9%

Bitcoin (BTC) delivered much surprises into Oct. 14 arsenic the absorption to macro triggers saw a abrupt tally astatine $20,000.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Stocks, crypto fume shorts

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to one-week highs, gaining astir $2,000 successful hours.

After the United States Consumer Price Index (CPI) people for September came successful supra expectations, an initial crypto rout enactment bulls connected edge, but the symptom was abbreviated lived.

Bitcoin yet ran higher than its pre-CPI levels, pursuing stocks which were described arsenic delivering the "biggest carnivore trap of 2022."

"That’s gotta beryllium the biggest carnivore trap I’ve seen truthful far," fashionable Twitter trading relationship Stockrocker reacted.

"Even I was starting to consciousness rather bearish."

S&P 500 1-hour candle chart. Source: TradingView

Bitcoin frankincense kept volatility — and liquidations — coming arsenic spot terms bounced astir an established trading range.

Popular Twitter analytics relationship On-Chain College noted that liquidations successful a azygous hr connected the time were the highest connected those timeframes successful implicit a month.

Data from monitoring assets Coinglass enactment full BTC liquidations astatine $116 cardinal successful the 24 hours to the clip of writing. Cross-crypto liquidations totaled $327 million.

Crypto liquidations chart. Source: Coinglass

While failing to reclaim the $20,000 mark, Bitcoin was succeeding successful flipping traders’ outlook to the bullish side.

Analyzing illustration behaviour stretching backmost to 2019, Credible Crypto argued that the signals were determination for an extended upside breakout.

“Our past 2 large impulses were some preceded by astir 120 days of comparatively low-volatility consolidation earlier they began,” helium summarized.

“It's expected to beryllium boring- it's portion of the process. The much boring it gets the amended it is for the coming expansion.”

BTC/USD annotated chart. Source: Credible Crypto/ Twitter

Trader connected aboriginal bottom: CPI determination "isn't it"

Attention frankincense focused connected whether markets could sphere the presumption quo astatine the extremity of the week.

Related: Why is the crypto marketplace down today?

In a motion of imaginable occupation brewing, the U.S. dollar scale (DXY) began clawing backmost mislaid crushed connected the time successful what could yet instrumentality the momentum retired of the hazard plus rally.

Summarizing the situation, fashionable trader Roman said that portion it paid to beryllium "macro bearish," determination was nary crushed to disregard the signs of what should beryllium a impermanent alleviation rally.

"Yes I americium macro bearish but this determination down isn’t it," portion of a Twitter thread read.

"There’s bullish divergence connected each higher timeframe and the DXY has carnivore divs. USDT.D rejected absorption arsenic well. Tiny brained investors shorting the bottommost yet again."

U.S. dollar scale (DXY) 1-hour candle chart. Source: TradingView

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