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Bitcoin ‘bear trap’ sees BTC price near $20,000 as daily gains surpass 9%

Bitcoin ‘bear trap’ sees BTC price near ,000 as daily gains surpass 9%

Bitcoin ‘bear trap’ sees BTC price near $20,000 as daily gains surpass 9%

Over $320 million in liquidations join the grueling 24 hours for crypto traders.

Stocks, crypto smoke shorts

Data from Coin Telegraph Markets Pro and Trading View showed BTC/USD surge to a weekly high, gaining nearly $2,000 in hours. After the US consumer price index (CPI) for September beat expectations, a first cryptocurrency outflow followed. Borderline bulls, but the pain was short-lived. Bitcoin eventually broke above its pre-CPI level, following stocks dubbed the “biggest bear trap of 2022.” This has to be the biggest bear trap I’ve ever seen.  so far,” The stock market’s popular Twitter account responded,

“Even I was starting to feel pretty pessimistic.”

Bitcoin therefore maintained volatility and sell-offs as the spot price bounced around a set trading range. Popular Twitter analytics account On-Chain College noted liquidations in a single hour of the day for these periods were the highest in over a month. Data from monitoring resource Coin glass put total BTC settlements at $116 million in the 24 hours before press time bullish side.

In analyzing chart behavior since 2019, Credible Crypto argued that the signs of an ongoing bullish breakout are in place “Our last two major rallies were preceded by approximately 120 days of relatively low volatility consolidation before they began,” he said. sums it up:

“It should be boring, that’s part of it. The more boring it gets, the better it gets for the next expansion.

Trader on future bottom: CPI move “isn’t it”

In a sign of possible trouble ahead, the Dollar (DXY) index started to regain ground lost on the day, which could still benefit from the rally in risky assets. Popular trader Roman summed up the situation, saying that while being “macro bearish” has paid off, there is no reason to ignore signs of a temporary recovery rally. “Yes, I’m a macro bear, but this move down is not,” reads part of a Twitter thread.

There is bullish divergence on any timeframe above and DXY has bearish splits USDTD also turned resistance down. Small-brained investors have cut the fund again.”

 

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