Bitcoin bulls are returning after BTC rebounds at a major support level

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A sell-off took command of the cryptocurrency market on April 7th after the price of Bitcoin (BTC) fell below $ 56,000.

The market-wide sell-off resulted in $ 1.4 billion in liquidations, and some analysts suggested that this could be the final step for overfunded long traders before Bitcoin can soar to $ 70,000.

BTC / USDT daily chart. Source: TradingView

One sign that the market had moved ahead of itself for the past week was the rapidly rising kimchi premium, which was followed by a seven percent drop in BTC price on April 7 as traders feared it would could be the signal for a market peak.

Despite the market downturn, analysis of the on-chain data suggests that Bitcoin could soon hit a new all-time high as whales, miners and long-term owners have reduced or stopped sales and institutional demand remains high.

Traditional markets close to record highs

Equity markets were near their all-time highs on Tuesday as the acceleration in employment growth, record activity in the service sector and expansion in manufacturing led to unexpected optimism that drove share prices higher.

Despite this positive news, the Dow and NASDAQ closed 0.06% and 0.16% respectively, while the S&P 500 ended the day up 0.06%.

The Coinbase listing offers a little relief

A couple of altcoins managed to accumulate throughout the day after Coinbase announced that 1INCH, Enjin (ENJ), New Type of Network (NKN) and Origin Protocol (OGN) will be listed on Coinbase Pro.

Following the announcement, the price of 1INCH and ENJ saw modest gains of 5%, while the Origin protocol rose 10% and NKN rose 27%.

Solana (SOL) was also up 10% and Ethereum (ETH) was down 7% to trade below $ 2,000.

Daily market performance in cryptocurrencies. Source: Coin360

The market cap for cryptocurrencies is now at $ 1.90 trillion, and the dominance rate of Bitcoin is 55.6%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.