Over the past many  years, I’ve been actively observing and trading in the cryptocurrency market. One key lesson I’ve learned is that fundamentals play a crucial role in shaping market movements. Unlike technical analysis, which focuses on price charts and patterns, fundamentals are deeply rooted in real-world events, geopolitical developments, economic policies, and investor sentiment. If you’re trading crypto and ignoring fundamentals, you’re putting yourself at unnecessary risk.

A recent and significant example is the escalation of conflict between Israel and Iran. This type of geopolitical tension can have a serious and immediate impact on global financial markets—including cryptocurrencies. While many see crypto as a hedge against traditional financial systems, the reality is that in the short term, these assets are often highly sensitive to global instability.

How Wars and Conflicts Affect Crypto Markets

When a war breaks out, especially between countries with global influence, it often triggers uncertainty and fear in the markets. In the case of the Israel-Iran war, the crypto market has already shown signs of extreme volatility. During the early stages of such a conflict, sudden price swings, liquidity shocks, and panic selling are common.

Based on historical patterns and current indicators, there is higher probability of a major correction or crash within the first few weeks of such events. Bitcoin and other major altcoins could experience sharp declines before the market stabilizes or recovers, depending on how the situation unfolds.

My Advice to Fellow Traders

• Stay updated: Monitor geopolitical developments and major news headlines daily.

• Avoid emotional trading: Fear and FOMO (Fear of Missing Out) are dangerous in uncertain times.

• Use minimal leverage: I strongly recommend not exceeding 3x leverage during such periods. The risk of liquidation is too high.

• Focus on risk management: Always average your trades during a market crash.

• Trade less, observe more: Sometimes, not trading is the best trade. Preserve your capital and wait for confirmation signals.

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I will soon be sharing premium trade signals based on both fundamental and technical analysis. These will help guide you through this volatile period with clarity and precision. Make sure to follow this blog and turn on notifications so you receive timely updates, insights, and alerts.

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