Instead of just following Bitcoin, try to step back further to observe the whole development of the cryptocurrency market in the last few years, we can see the market capitalization is at the border. decision circles. Decide between booming or declining for a long time.
Market capitalization is a number representing the value of the entire market in dollars. It's when you take the entire supply of cryptocurrencies multiplied by its current price, then put all the results of all cryptocurrencies together. Therefore, it also shows the size and overall development of the market.
Observe the historical evolution of the cryptocurrency market capitalization
At the time of writing, the capitalization is at $ 197.4 billion (according to Coinmarketcap). And Bitcoin has just made a panic again when it has returned below $ 7,000 - which is a very difficult level it can overcome. This is a sign of weakness in the short term, when the bears are intimidating.
If you look at the history of capitalization as a whole, you will realize that this is a decisive moment in the long run.
A few things realized from the above observation:
- In November 2017, the market accelerated with the financial bubble effect when market capitalization exceeded 196 billion dollars.
- In November 2018, the market long-term decline when market capitalization broke out at $ 196 billion.
- In May 2019, the market marked a return to growth as capitalization exceeded 196 billion dollars.
- In January 2020, the market rebounded after being strongly supported at the capitalization of $ 196 billion.
- In March 2020 the market broke the $ 196 billion market cap and is currently retesting this level.
As you can see, the $ 196 billion region is really a very important boundary. The boom or decline since this capitalization can be in years.
Many analyzes and judgments contradict right now
Investors in Vietnam market in particular also have a lot of opposite analysis, it is impossible to determine which side the majority belongs to.
One party is expected to increase strongly due to Halving event in May coming. Along with that is the mentality of choosing Bitcoin as an asset shelter in the context of economic crisis. On the one hand, expectations are lower because signs of technical analysis in the long and short term are not so optimistic.
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According to BeInCrypto