Not exactly sure what he meant by that but was checking to see if anyone is aware of how the cap can relate to highs and lows.
What is market capitalization?
It is a measure of the worth of a company, stock or a currency (like Bitcoin). It can be called the market value.
Mathematically, it is the product of a share price and the number of shares.
Over 18 million bitcoins has been mined so far, so it's market cap, would be that sum multiplied by the fiat value of Bitcoin at that time.
This parameter should be useful in checking the worth of one investment over another.
You should note that the value can give a wrong impression of the actual worth of a currency.
For example; if an altcoin which was just launched has 1 million coins in circulation, and fakes a couple of orders, so it appears to be selling at a market value of 1 dollar; it's market cap would be $1 million which is far from the true worth of that currency.
So it's not a reliable way to compare various currencies, and absolutely cannot be used to judge the next high and lows of a particular currency.
It's dependent on two factors as I said above: the supply and market price. The market price is relatively constant, so the main variable is the market price.
If it's dependent on the market price, it cannot reliably be used to check for future prices.
