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Bitcoin (BTC) is holding steady and trading in the green this morning despite traditional global markets suffering one of their most violent sell-offs in years.
A massive spike in energy prices has triggered a "limit down" opening for major Asian indices. South Korea’s KOSPI, for instance, was down by more than 9%, triggering a circuit breaker.
Yet, amid the chaos, the leading cryptocurrency is currently holding steady.
Bitcoin started near the $67,100 to $67,200 range and pushed upwards, peaking at roughly $67,600 around 04:25 UTC. Following this peak, sellers stepped in, initiating a steady downtrend.
The selling pressure accelerated leading up to 05:00. It is currently trading at 67,816. The bulls are attempting to establish a higher support level.
That said, the "limit down" scenarios in the East are already acting as a contagion. U.S. stock market futures are now pointing to significant declines at the open. It remains to be seen whether BTC will be able to weather this test.
A relief rally in the offing?
As reported by U.Today, Bitcoin analyst Willy Woo recently noted that a potential Bitcoin rally to the mid-$80,000 range should be viewed as a deceptive "bull trap."
Woo pointed out that investor flows have been recovering since mid-February.
Woo argued that Bitcoin's rapid sell-off in the early stages of this bear market has led to temporary exhaustion.
He expects the asset to consolidate and mount a rally testing resistance in the mid-$80,000s, which represents the cost basis for short-term investors.
The analyst has stressed that Bitcoin is still "solidly in the middle of its bear market" based on long-range liquidity.
This potential relief rally could stretch out to the end of April. Woo bases his thesis on tracking capital flows and liquidity changes.
Dan Burgin
Vladislav Sopov
