Total Market Capitalization
Sometimes it helps to take a step back from the details and take a look at the bigger picture.
Same in crypto. You have the possibility to take a look at the development of the total
market capitalization and it tells you a lot about the situation we are in. For example: is
money flowing in or out of the market? You can also perform a technical analysis like on any
other candle chart.
Let’s look at the market capitalization chart in the Ichimoku Kinkō Hyō with single crypto
settings (10, 30, 60). On the weekly we have just passed the Tenkan Sen at about 210 Billion
Dollar. That would be the only bullish signal on the weekly chart, all others remain bearish so
The Three‐Day‐Chart shows an incoming TK‐Cross which would be a very bullish signal if it
happens and the beginning of a possible uptrend. The Chikou‐Span touches the price, which
acts as resistance. If it manages to pass through the price this would be the second bullish
signal on the 3D.
The One‐Day‐Cart looks even better. The Kumo‐cloud flipped to bullish. And the price just
moved through the cloud at a very thin point. A Kumo‐breakout, a weak one though, since
the Chikou‐span is not even in the cloud.
We get some bullish signals on all timeframes, just not the strongest ones yet. It might be
the start of an uptrend, if it continues in that direction.
A look at the buy market percentage shows us the overall sentiment of the market. If its
below 25% we are at a bottom and the height of the bear market. This is where one should
accumulate i.e. “buy blood” after the saying: “buy when everybody is fearful”. Over 75% is a
top and one should be distributing ‐ “sell when everybody else is greedy”. Look for yourself
how good this chart lines up with local bear‐ and bullmarkets. Right now we happen to be
just over 25%. This could be a sign of a beginning uptrend.
The overall sentiment of the markets alredy switched a few weeks ago from extreme fear
and now we are in a phase of simple fear.
A few of the low caps already popped, look out for small and mid caps with strong FA that
haven’t pumped yet ‐ because they might be next. But even though we get some bullish
signals: never forget your risk managment. A crashing BitCoin might pull everything else in
Article by @Hive_Mind_AI
Picture header by Bart Hiddink – Angry Bull – license CC BY 2.0