Bitcoin bulls return after BTC bounces at a key support level

Altcoin

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

The market-wide sell-off led to $1.4 billion in liquidations and some analysts suggested that this could be the final sweep out of overleveraged long traders before Bitcoin can make a run higher to the $70,000 level. 

BTC/USDT daily chart. Source: TradingView

One sign that the market had moved ahead of itself over the past week was the rapidly rising Kimchi premium, which was followed by a seven percent decline in BTC price on April 7 as traders worried that it might be the signal for a market top.

Despite the market downturn, analysis of on-chain data suggests that Bitcoin could soon see a rally to a new all-time high as whales, miners and long-term holders have decreased or stopped selling altogether and institutional demand remains high.

Traditional markets near record highs

Equities markets traded near their all-time highs on Tuesday as accelerating job growth, record levels of service sector activity and an expansion in manufacturing resulted in unexpected optimism that pushed stock prices higher.

Despite this positive news, the Dow and NASDAQ closed down 0.06% and 0.16% respectively, while the S&P 500 managed to end the day with a 0.06% gain.

Coinbase listing provides a little relief

A few altcoins did manage to rally throughout the day after Coinbase revealed that it would list 1INCH, Enjin (ENJ), New Kind of Network (NKN) and Origin Protocol (OGN) on Coinbase Pro. 

Following the announcement, the price of 1INCH and ENJ saw modest gains of 5% while Origin Protocol saw a 10% increase and NKN rallied 27%.

Solana (SOL) also rallied 10% and Ethereum (ETH) declined 7% to trade below $2,000.

Daily cryptocurrency market performance. Source: Coin360

The overall cryptocurrency market cap now stands at $1.90 trillion and Bitcoin’s dominance rate is 55.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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