Bitcoin Price Rally Over? Key $9.4K Support Zone Holds for Now

Bitcoin (BTC) price was unable to hold the psychological barrier of $10,000 and couldnt break through the resistance of $10,400. This rejection caused a corrective move to $9,450, leaving a $400 CME gap behind. Following Bitcoins severe correction, many altcoins also retraced more than 10% over the weekend.

But does this mean the bullish momentum is over?

Crypto market daily performance. Source: Coin360Rejection at $10.4K triggers a 10% selloff

BTC USDT 1-day chart. Source: TradingView

The price of Bitcoin couldnt break through the resistance of $10,400 and therefore retraced towards the next major support area, which is found at $9,500. As discussed in a previous analysis, a retracement is still very healthy for the market. Bitcoin alone managed to surge from $6,900 to $10,400 in the past six weeks, which usually means a correction is on the horizon.

The overall structure is still intact, as the price is still making higher highs and higher lows. However, its essential to keep this $9,400-9,500 range as support. A drop further down would cause a higher low structure to be invalidated, which means that further downward momentum is warranted.

Bitcoin correction produces a $400 CME gap

BTC USD 4-hour CME chart. Source: TradingView

The CME chart is showing a $400 gap. These gaps occur during weekends when the CME trading is closed. The market has a standard narrative that these gaps need to close before the price can continue moving, which essentially means that the Bitcoin price can surge back up towards $10,400.

Theres never a certainty that these gaps fill and the chart is still providing a few open gaps at this point as theres also a gap at $11,800 still open and another on the lower levels as well.

Total crypto market cap finds resistance at $300 billion Total market capitalization cryptocurrency chart. Source: TradingView

The total market capitalization was also due for some corrective movements as it gained $140 billion in two months. The market capitalization rallied from $167 billion to $305 billion but couldnt break the resistance around $300 billion.

Thats still not a bad sign for the overall momentum of the market. The 2019 rally shows that there are corrective movements along the way, which usually present buy the dip opportunities.

The green rectangle is a crucial support for the total market capitalization to hold. As long as the total market capitalization holds the area between $250-265 billion as support, continuation looks ...

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