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

Bitcoin (BTC) showed typical volatility on October 13 as US economic data rocked the market.

Traders Hold $21,000 Target

Data from Cointelegraph Markets Pro and TradingView follow BTC/USD, showing some textbook moves with the US Consumer Price Index (CPI) printout for September.

September’s figures, which were 0.1% higher than expected year-on-year, were immediately felt as risk assets were sold and the dollar strengthened in the face of ongoing inflationary pressures.

In line with previous CPI events, Bitcoin saw an upswing fake, but it disappeared within minutes, leading to a protracted downside bottoming out at $18,183 on Bitstamp.

The rally took the largest cryptocurrency to $18,800, its lowest since Sept. 22.

According to Coinglass data, both long and short traders suffered burns, with total 24-hour liquidations reaching $57 million.

“THE BOTTOM is not in.” The analytical resource Material Indicators put together with Binance’s purchase order data.

The attached chart shows support at $18,000 in BTC/USD, offering at least temporary support levels.

Popular Crypto trader Il Capo claimed that Bitcoin is bracing for a bear market rally despite falling 4% on the day.

Continuing the existing theory, a Twitter post of the day called for a rally to $21,000 before the actual macro bottom appeared, which was expected to be between $14,000 and $16,000.

“I didn’t expect this move to be this low. In fact, I expected the backlash to come much sooner.” Crypto’s Il Capo I have written About the post CPI dip.

“That said, SPX is pumping and DXY is dumping. $BTC is still supported. This could be a massive bear trap. Bounce to 21k still valid. is.”

Dollar plummets after first gain

On the one hand, the CPI event did not appear to undermine confidence in the stock market, with US indices rising at Wall Street’s open.

RELATED: Bitcoin Looks to the Bottom of the ‘Textbook’, Comes with a $16,000 Whale Cost Base

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

The U.S. Dollar Index (DXY), which rose earlier in the day, retreated dramatically to its target of 112.5 points, helping ease the pressure on the highly correlated crypto markets.

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