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Cryptocurrency, A Crucial Metric that has been largely discussed is the relationship between prices’ action and market capitalization. Crypto, traders and regulators.
What is Price Action?
Players, INSTITUTIONAL INVESTORS, INSTITUTIONAL INVESTORS, INSTITUTIONAL INVESTORS, INSTITUTIONAL INVESTORS. The Dynamic Interaction Between Buyers and Sellers on the Cryptocurrency Markets, Shaping Prices and Influencing Market Capitalization.
Capitalization markets in Crypto: What is it?
The market capitalization (market capitalization) is the total value of all the current parts in a class of cryptocurrency or particular Assets. It serves In Billions of Dollars.
The Relationship Between Price Action and Market Capitalization
Markets. . Conversely, when prices decrease or decrease down, market capitalization may decrease.
Here is why:
- Volume : When more traders buy parts at the same time, they tend to buy more, increase the overall value of the assets.
- Order Flow : .
- Trendy Reversals : market reversals can be triggered by variations in prices, such as a sudden increase or a decrease in the volume of negotiation, the flow of the support or the levels of support / resistance. These events can lead to a temporary prices correction and potentially increase market capitalization.
- Penny Stocks : The volatile nature of cryptocurrencies with small capitalization (Penny)
Case Study: Bitcoin Price Action
Bitcoin (BTC) was a pioneer in demonstrating the relationship between prices’ action and market capitalization. Stock Market (ETF) to its current status as a decentralized cryptocurrency
* 2009-2011 : During the first days of Bitcoin, the prices were relatively to record summits.
* 2013-2014 : The subsequent recovery in 2016 marked a turning point for the growth and stability of Bitcoin.
* 2020-present
:
Implications for Investors
Crypto highlights the importance of investors to be aware of these dynamics:
- Diversification : investing
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