The Gaddafi loyalists' effort to retake the town, which is east of the country's capital of Tripoli, is being called "the fiercest attack [by Gaddafi's supporters] so far."

Despite Gaddafi's supporters use of tanks and artillery, the rebels were successful in pushing them back.

"Using machine guns, sticks and anything else they could find, crowds protected the courthouse, serving as an operations center by the opposition in Misrata, and successfully repelled Gadhafi militias armed with tanks and heavy artillery," CNN reports, noting that a total of 42 people (opposition and pro-Gaddafi forces) may have been killed.

One source told Reuters that the loyalists had fled to a military airbase about 4 miles from Misrata.

Reuters reports:

"Misrata, with a population of about 300,000, is the largest town controlled by Gaddafi opponents outside the rebel-held east of the country.

If rebel soldiers are able to continue their fitful advance westwards, Misrata could be a stepping stone to reaching the capital, Gaddafi's principal stronghold."

After the Gaddafi forces retreated, tens of thousands of people celebrated the victory in Misrata, holding banners that said, "Libya remains free" and "The End."

State television previously reported that Misrata and Zawiyah, which is west of Tripoli, had fallen to government control.

Air raids and ground battles launched by Gaddafi supporters are also being reported in Bin Jawad, Ras Lanuf and Az-Zawiyah.

The New York Times reports:

"The Libyan military drove rebel forces back along the main coastal road on Sunday, ambushing the advancing militias as they entered the coastal town of Bin Jawwad and pushing them out with tank fire and air strikes, according to witnesses near the town.

The number of casualties in the battle was unclear, but it set back the rebels’ western advance just a day after they celebrated a major victory in taking the vital oil port of Ras Lanuf. On Sunday, rebel leaders said they were regrouping outside that city and would begin pushing west toward Bin Jawwad again."

Though Bin Jawad has fallen, "opposition rebels continued to advance on the area amid conflicting claims about the capture and recapture of several strategic cities and towns," according to Al Jazeera English.

Reports of shooting in Tripoli, an area that remains key in the struggle for power, also surfaced Sunday but it was unclear if the shots were from violent struggles or Gaddafi loyalists' "celebratory fireworks" as one Libyan government spokesman said.

Fighting remains violent elsewhere and conflicting media reports make it hard to tell who has the upper hand in the war-torn country.