I've heard a trader say that he uses market cap in relation with the current price, to easily determine where the high or low of the market is – allowing you to plan ahead when placing your trades.
How do you do this?
Any idea?
JH
Marketcap is the most misleading term in crypto. With this highly volatile market, marketcap does not give you the truth about the real value of the market, or of your interest cryptocurrency. Especially if you are in a period with so many scam projects. When prices of those scam coins or tokens (with high total supplies too) added to total market cap. The temporary total values of market cap will be inflated, but it will be decreased too fast when waves of scam projects burst.
Remember about liquidity of your interest asset too. One asset has total market cap does not mean that you can enter and exit it on market easily if its liquidity is too low.