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.
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