The total market capitalization of cryptocurrencies shows a healthy correction in an upward trending market.
For the first time since 2019, the total market capitalization of cryptocurrencies created a new higher high (based on candle closes), that is considered as a bullish signal and indicates healthy correction. However, many traders expect all upward moves to be similar to the 2017 mania.
That’s simply not the case because the current market structure is resembling only the start and build-up of a potential bull run similar to the sentiment and momentum of late 2016.
It means a slow upward grind, in which last resistance levels are tested and confirmed as new support areas before climbing more.
In that case, the total market capitalization of bitcoin is still acting above the 100-week and 200-week Moving Averages (MAs) with crucial support beneath the current market cap.
If the total market capitalization maintains the $270-275 billion areas for support, next continuation upward is likely. If a new impulse move happens, the next resistance and target zone can be seen at $550 billion.
The daily analysis of Bitcoin is showing precise levels to watch. On the upside, if the price breaks through the $10,450 level, the potential and crucial pivot is structured between $10,900-11,000.
If the market aims to go higher, the price of Bitcoin is required to break through the $11,000 level. But if the price of Bitcoin rejects at $11,000, it will possibly continue making range-bound movements and the possible closure of the CME gap at around $9,600.
On the downside, if the price of Bitcoin breaks below $10,000, further correction will be possibly towards the crucial pivot around $9,500. This dropdown warrants a close of the CME gap and a test of the essential weekly level.
Nevertheless, such a correction is still referred as a healthy retrace in an uptrending market.