Bitcoin Bulls Bounce Back After BTC Bounced At Key Support Level

A wave of selling took over the cryptocurrency market on April 7 after the price of Bitcoin (BTC) dropped below $ 56,000.

The market-wide sell-off resulted in a $ 1.4 billion liquidation, and some analysts have speculated that this could be the final sweep of over-leveraged long traders before Bitcoin can rally to the $ 70,000 level.

BTC / USDT daily chart. A source: TradingView

One sign that the market moved ahead in the past week was the rapidly growing premium for kimchi, which was followed by a 7% decline in BTC on April 7 as traders feared this could be a signal for a market top.

Despite the market downturn, on-chain data analysis suggests that Bitcoin may soon see a rise to new all-time highs as whales, miners and long-term holders have declined or stopped selling altogether and institutional demand remains strong.

Traditional Markets Around Record Highs

Equity markets traded near their all-time highs on Tuesday as accelerated job growth, record levels of activity in the services sector, and expansion in manufacturing sparked unexpected optimism that boosted stock prices.

Despite this positive news, the Dow and NASDAQ closed 0.06% and 0.16% lower, respectively, while the S&P 500 managed to close the day with 0.06% gains.

Coinbase Listing Provides Little Relief

Several altcoins managed to gather within a day after Coinbase announced that 1INCH, Enjin (ENJ), New Kind of Network (NKN) and Origin Protocol (OGN) will be listed on Coinbase Pro.

Following the announcement, the price of 1INCH and ENJ rose slightly 5%, while Origin Protocol rose 10% and NKN rose 27%.

Solana (SOL) is also up 10%, while Ethereum (ETH) is down 7% and is trading below $ 2,000.

Daily cryptocurrency market indicators. A source: Coin360

The total cryptocurrency market capitalization is now $ 1.90 trillion, and the Bitcoin dominance rate is 55.6%.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Every investment and trading move carries a risk, so you should do your own research when making a decision.