Cryptocurrency is eye-ing the $200 billion of market cap
Hello all, today I'm going to cover the technical analysis of crypto total market capitalization which always becomes the most important component of cryptocurrency in general. I won't do a detail analysis of bitcoin because yesterday we've covered its bounce and my bias is still remain the same. Now let's see what we can get from this market breakdown.
Market capitalization refers to the Dollar market value of the circulating supply of the coins all around the world. Currently the top 10 of cryptocurrency based on CMC reflects almost the 85% of the total market capitalization. This means that the bigger the market capitalization of a coins, it has bigger correlation that can affect the market capitalization of the market. Money inflow is the key of this market capitalization.
From the chart applied, we can see that at March 13th, 2020 the capitalization has touched the lowest level since the beginning of 2019 which is around $107 billions. The huge money outflow because of the fear of COVID-19 becomes the first and the biggest assumption of that drop of market capitalization. This condition is directly giving a big effect to the bitcoin's price which moving in line with the drop of crypto market capitalization. However, whenever the fear comes, there will be a huge sell off of the market. But, during this sell off, there will be a potential relief rally too as the effect of the extreme fear.
I've seen this relief rally in bitcoin previously and after I open the market capitalization chart, it remains the same. That's why I'll expect a relief rally will take place at current level and we might see a potential push of the total market capitalization to claim back the $200 billions which is another crucial levels for this market cap. And of course bitcoin is the first asset that comes to my mind of this potential relief rally. They both have the similar pattern and positively correlate each other.
Market capitalization refers to the Dollar market value of the circulating supply of the coins all around the world. Currently the top 10 of cryptocurrency based on CMC reflects almost the 85% of the total market capitalization. This means that the bigger the market capitalization of a coins, it has bigger correlation that can affect the market capitalization of the market. Money inflow is the key of this market capitalization.
From the chart applied, we can see that at March 13th, 2020 the capitalization has touched the lowest level since the beginning of 2019 which is around $107 billions. The huge money outflow because of the fear of COVID-19 becomes the first and the biggest assumption of that drop of market capitalization. This condition is directly giving a big effect to the bitcoin's price which moving in line with the drop of crypto market capitalization. However, whenever the fear comes, there will be a huge sell off of the market. But, during this sell off, there will be a potential relief rally too as the effect of the extreme fear.
I've seen this relief rally in bitcoin previously and after I open the market capitalization chart, it remains the same. That's why I'll expect a relief rally will take place at current level and we might see a potential push of the total market capitalization to claim back the $200 billions which is another crucial levels for this market cap. And of course bitcoin is the first asset that comes to my mind of this potential relief rally. They both have the similar pattern and positively correlate each other.
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