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Bitcoin price hits 3-week low on US CPI as Bitcoin liquidates $57 million

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Bitcoin (BTCThe classic volatility on October 13th as US economic data shook the markets.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

The trader commits to the $21,000 target

info from Cointelegraph Markets Pro And the TradingView BTC/USD follows as it makes some moves in the textbooks to accompany the US Consumer Price Index (CPI) September print.

September’s numbers came in above expectations by 0.1% y/y, making it immediately felt, with risk assets sold off and the dollar rebounding in the face of persistent inflation pressures.

In line with previous CPI events, Bitcoin experienced a fake uptrend, which evaded within minutes, leading to a prolonged drop, which reached just $18,183 on Bitstamp.

The recovery took the largest cryptocurrency to $18,800, after hitting its lowest level since September 22nd.

Long-term and short-term traders felt the burn, with 24 hour liquidations totaling $57 million, according to to data from Coinglass.

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Bitcoin liquidation chart. Source: Coinglass

‘Bottom is not there’, supplier analytics indicators Summarization Along with order book data from Binance.

The accompanying chart has shown support at $18,000 on BTC/USD, providing at least a temporary support level.

BTC/USD (Binance) order book chart. Source: Material Indicators / Twitter

despite being down 4% from todayPopular trader Il Capo of Crypto insisted that Bitcoin was nonetheless on the side of a bear market bounce.

Continuing an existing theory, a Twitter post back in the day called for a rally $21,000 before the real bottom appearsbetween $14,000 and $16,000.

“I wasn’t expecting this move to come down so low. In fact, I was expecting the bounce to come early,” Il Capo of Crypto Wrote About the subsequent decline of the consumer price index.

“With that being said, SPX is pumping and DXY is dumping. BTC$ remains in support. This could be a huge bear trap. The retracement to 21k is still in the works.”
Annotated BTC/USD chart. Source: Il Capo of Crypto / Twitter

Dollar falls after initial gains

In the meantime, the CPI event does not appear to have affected stock market sentiment, with US indexes rising at the opening of Wall Street.

Related: Bitcoin ‘textbook’ eyes down where the $16,000 cost whale foundation begins

At the time of writing, the S&P 500 and Nasdaq Composite are up 0.3% and 0.6%, respectively.

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The US Dollar Index (DXY), after posting gains earlier in the day, saw a dramatic rebound to target 112.5 points, which helped ease pressure on the highly correlated crypto markets.

US Dollar Index (DXY) candlestick chart. Source: TradingView

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