readCrypto

Meaning of rising gap in Market Cap chart: new capital inflow

readCrypto Mod Updated   
CRYPTOCAP:USDT   Market Cap USDT, $
Hello?
Hello traders!

If you "Follow" us, you can always get new information quickly.
Please also click “Boost”.
Have a good day.

-------------------------------------

(USDT chart)
I believe that the meaning of the gap that occurs in the Market Cap chart indicates whether funds are flowing into or out of the coin market.

Accordingly, I don't think the size of the candle or any other movements are very important.

I think the size of the candle indicates how many transactions are taking place.

Therefore, if the size of the candle begins to decrease and a gap begins to form, I think there is a higher possibility of creating a big wave in the coin market in the future due to the inflow or outflow of funds into the coin market.


As the size of the candle suddenly decreased, the gap began to rise.

If these movements continue to occur, the coin market is expected to eventually show an upward trend.

-------------------------------------------

(USDC chart)
I don't think changes in the USDC chart will have a direct impact on the coin market because there aren't many trading pairs that can be traded directly with USDC, i.e. the USDC market.

However, I think it depends on whether the investment products released in the stock market as coins will show similar movements to the stock market or whether they will show independent movements.


Therefore, it is likely that it will follow the stock market trend to some extent since it has currently gapped higher.


Currently, the only investment products released on the watch market are the BTC ETF and the ETH ETF in some countries, but since BTC is the leader in the coin market, it is expected to have some influence on BTC movements.


It is expected that the more coins are released as investment products in the stock market, the more likely they are to be associated with stock market movements.

-------------------------------------------------- ---

(BTC.D chart)

(USDT.D chart)

It is recommended to view the BTC dominance chart and USDT dominance chart together.

The reason is that
1. BTC dominance lets you know whether funds are concentrated towards BTC or altcoins.

2. This is because the overall trend of the coin market can be seen through the movement of USDT dominance.


Therefore, in order for the coin market to become a bull market, both BTC.D and USDT.D must maintain a downward trend.

If this is not the case and everyone maintains an upward trend, there is a high possibility that the coin market will show a downward trend.


Although you cannot know which specific coin (token) to invest in, you can tell by looking at the movement of BTC dominance or USDT dominance whether you should invest intensively in BTC or ETH, or altcoins.

Currently, BTC.D and USDT.D are showing an upward trend at the same time.

In this case, it is recommended not to trade as the coin market is likely to decline, but it is a time to intensively purchase BTC or ETH in the mid to long term.

-------------------------------------------------- -------------------------------------------

** All explanations are for reference only and do not guarantee profit or loss in investment.

** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA

** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.

** This chart was created using my know-how.

---------------------------------
Comment:
A rise in BTC dominance means that altcoins become more difficult to trade.

Therefore, we need to gradually reduce altcoin transactions.

Even if you continue trading, you need to lower your investment proportion.

Also, if the price continues to fall, you should not keep buying more and reducing your cash reserves to zero.

You must have cash on hand.


The success or failure of your investment is likely to be determined by your psychological state and cash reserves.

This means that cash holdings are also an important factor in stabilizing one's psychological state.
Comment:
(USDT 1D chart)
The upper and lower tails are forming long candles, showing an upward trend.

I don't think this is a very good phenomenon because the rise of the candle means that USDT increases by selling coins (tokens) in the USDT market.

We believe that the rise in USDT while creating a gap is a phenomenon of new funds flowing into the coin market, so it is recommended to maintain the upward trend by increasing the gap.

Although it is not much, it is still showing an upward trend by creating a gap, so if a larger gap is created, the coin market is expected to rise.

(USDC 1D chart)
USDC is showing a gap decline again.

Accordingly, the coin market is likely to show different movements from the stock market.

However, caution is required as it may have a negative impact on investment products made with coins.

[Example of exchange chart setup]

(Binance)
www.tradingview.com/x/S94aDxa8

(Upbit)
www.tradingview.com/x/DF6cGh3G/
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.