Hi traders!
Today we will look at the cryptocurrencies capitalization chart to complement the previous analysis. If we want to know what the market is like, it is not enough to do just a bitcoin analysis. The world's leading traders are doing the following analyzes - bitcoin, BTC dominance, cryptocurrency capitalization and long / short ratio. After such a comprehensive analysis, we have a real overview of the market. Last week we focused on the dominance of BTC and today we look at the capitalization of cryptocurrencies.
The capitalization chart shows the total amount of capital in all cryptocurrencies.
Bullish scenario
We are in a triangle from which capitalization will rise up. If you find the chart of capitalization and bitcoin very similar, you are right. Their charts are almost identical. However, they have a few differences, and at this point the capitalization of cryptocurrencies seems to be ahead. The space in the triangle appears to be smaller, and therefore it may be capitalization that first leads to possible growth.
Bearish scenario
In this scenario, we track the channel we've seen on the chart for 2 months. In this case, there would be an even more radical decline, which could stop at $ 200 billion. So over 72 billion will go out of the crypto market, a radical decline. Most likely all altcoins and bitcoins would drop quite sharply. Even though this possibility is quite extreme, it is still possible. At this point, we must wait to which side capitalization will go. As long as we are in our narrow corridor, it is still irrelevant. To see the confirmation, we need to break through either the upper trendline or the lower edge of the triangle. If we break through the upper trendline and we can fix it, we will most likely go up. If we break the triangle formation, we will go down. However, until we break the structure, the next direction is questionable.
May the crypto by with you!
Today we will look at the cryptocurrencies capitalization chart to complement the previous analysis. If we want to know what the market is like, it is not enough to do just a bitcoin analysis. The world's leading traders are doing the following analyzes - bitcoin, BTC dominance, cryptocurrency capitalization and long / short ratio. After such a comprehensive analysis, we have a real overview of the market. Last week we focused on the dominance of BTC and today we look at the capitalization of cryptocurrencies.
The capitalization chart shows the total amount of capital in all cryptocurrencies.
Bullish scenario
We are in a triangle from which capitalization will rise up. If you find the chart of capitalization and bitcoin very similar, you are right. Their charts are almost identical. However, they have a few differences, and at this point the capitalization of cryptocurrencies seems to be ahead. The space in the triangle appears to be smaller, and therefore it may be capitalization that first leads to possible growth.
Bearish scenario
In this scenario, we track the channel we've seen on the chart for 2 months. In this case, there would be an even more radical decline, which could stop at $ 200 billion. So over 72 billion will go out of the crypto market, a radical decline. Most likely all altcoins and bitcoins would drop quite sharply. Even though this possibility is quite extreme, it is still possible. At this point, we must wait to which side capitalization will go. As long as we are in our narrow corridor, it is still irrelevant. To see the confirmation, we need to break through either the upper trendline or the lower edge of the triangle. If we break through the upper trendline and we can fix it, we will most likely go up. If we break the triangle formation, we will go down. However, until we break the structure, the next direction is questionable.
May the crypto by with you!