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Tuesday, September 8, 2020

Bitcoin : How market cap will affect the bitcoin's price

Bitcoin : How market cap will affect the bitcoin's price

Hello all, here in this analysis I'll give the update about the total market capitalization and how will it affect the price of bitcoin in the future.

First, whenever we says about the total market capitalization, we must analyze the bitcoin's dominance too. Because these 2 things are very much related to each others. At current rate, the total market cap is approaching the strong support which is retesting previous broken resistance trend line as a support now. There is a huge chance the price will has its bounce from current zone but I won't say that this zone is unbreakable. It's all based on the sentiment and the people's trust too. Whenever the sentiment comes back to the positive side, we'll see a positive upside move too to the whole markets. But if the bitcoin failed to gain the trust and maintain the fear, we'll see further drop . Money inflow will be the main indicator to see the sentiment on the market.

Second thing is that the bitcoin dominance of this crypto market. Currently, the bitcoin is dominating around 57% of the total market value in crypto which means there is a significant value that bitcoin dominates on the total market capitalization. At this rate of significance, we can easily deduce that if the total market cap is gaining some points, it will produce a money inflow which 57% of those money inflow will enters the bitcoin's market. In other words, if there is a gain on the total market cap, there will be a bounce on bitcoin's price too. So, before we see and identify any bias, it's wise to see the total market cap as the indicator to measures the sentiment and the trust to current market's structure.

from Trading Ideas
via gqrds

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