The first crypto by market capitalization delivered an impressive surprise on October 14. Indeed, bitcoin (BTC) reacted to the economic news with a sudden surge to $20,000. On the H1 chart, we can clearly see the bitcoin price drop to $18,146 and then explode up to $20,000. Sudden movements that result in an increase of 9%.
A rise that brings bitcoin back close to $20,000
Bitcoin hits a weekly high within hours. This high is around $20,000. Economic news relating to US inflation, the CPI, rocked the markets yesterday. After this one exceeded expectations, the movement in the price of bitcoin sent the bulls into a panic. However, it was short-lived. Bitcoin finally broke above its pre-CPI levels. The king of cryptos thus maintained volatility and liquidations. However, the 9% rise did not allow bitcoin to break out of the $20,400 and $18,100 range.
According to data from Coinglass, BTC’s total liquidations amount to $116 million in the previous 24 hours. Additionally, inter-crypto liquidations reached $327 million.
With the current rise, buyers are trying to push Bitcoin above the $20,000 mark. Even though it takes a lot more strength for buyers, BTC was starting to send bullish signals. In effect, Credible Crypto argued that the signals were there for an extended move higher. He draws this conclusion by analyzing the behavior of the charts in 2019.
The DIP already reached?
The US Dollar Index (DXY) is starting to show signs of potential trouble. Sure enough, it started to recover the lost ground that day, which acts as a brake on the rise of cryptos, including bitcoin.
Summarizing the situation, the renowned trader, Novel, said there was no reason to ignore temporary bullish signs in Bitcoin. According to him, we can see a bullish divergence on each period. Moreover, the ” india dollarx” is also showing signs of weakness. Additionally, USDT also rejected major resistance. According to him, only unsophisticated investors who would be interested in selling BTC at this time.
With yesterday’s rise, bitcoin is starting to show safe-haven characteristics for investors in the face of the current crisis.
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