Bitcoin bulls are back: BTC bounces off support

After the Bitcoin (BTC) price dropped below $ 56,000, an intense sales wave started as of April 7.

The spread of selling pressure across the market led to $ 1.4 billion in liquidation, and some analysts suggested that this could be the effect of overly leveraged long position traders aiming for Bitcoin to move above the $ 70,000 level.

2-hour chart of the BTC / USDT pair. Source: TradingView

Bitcoin price seems to have gained upward momentum by bouncing off the lower Bollinger band. Kimchi premium, which was observed to move ahead of the market last week and rose rapidly. On April 7, a 7 percent drop in BTC price followed. Traders were concerned that this was seeing the peak and signaling a downside.

Despite the downturn in the market, on-chain data shows that Bitcoin may soon rise to an all-time high because whales, miners and long-term investors are reducing or halting their sales, as well as increasing institutional demand.

Traditional markets are approaching record levels

The increase in employment, the rising density of the service sector, and the expansion in production led to unexpected optimism in traditional markets while raising stock prices.

Despite this positive news, the Dow Jones and NASDAQ exchanges fell by 0.06 percent and 0.16 percent, respectively. S&P 500 managed to close the day with an increase of 0.06 percent.

Coinbase listing brought relief

Several altcoins managed to recover for the day after the announcement that 1INCH, Enjin (ENJ), New Kind of Network (NKN) and Origin Protocol (OGN) will be listed on the Coinbase exchange.

After the announcement, the price of 1INCH and ENJ gained 5 percent, while Origin Protocol rose 10 percent and NKN increased 27 percent.

Solana (SOL) rose 10 percent, while Ethereum (ETH) fell 7 percent to just under $ 2,000.

Daily cryptocurrency market performance. Source: Coin360

While the total cryptocurrency market value hovered at $ 1.9 trillion, Bitcoin’s dominance rate was calculated as 55.6 percent.

The opinions and comments expressed here belong only to the author. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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