📘 Technical and Fundamental Analysis in Cryptocurrencies

1. Definition of Concepts

🔹 Fundamental Analysis (FA)

Fundamental analysis studies the intrinsic value of a cryptocurrency based on:

The project and its team (credibility, experience, roadmap).

The technology (blockchain, scalability, security, utility).

Supply and demand (amount of tokens in circulation, scarcity, staking, burn).

Adoption (partnerships, number of users, use cases).

News (regulations, announcements, economic crises).

👉 Example: Before buying Ethereum, one can analyze its updates (e.g., "The Merge"), its DeFi/NFT ecosystem, and its adoption prospects.

🔹 Technical Analysis (TA)

Technical analysis focuses on price and volume charts to forecast future movements.

It relies on the idea that history repeats itself and that the market follows trends.

The main elements studied:

Trend (bullish, bearish, sideways).

Support and resistance (levels where price bounces or stalls).

Volumes (confirmation of the strength of a movement).

Technical indicators (RSI, MACD, moving averages).

👉 Example: If Bitcoin breaks a resistance with large volumes, this may signal a bullish continuation.

2. Why is it important for a trader?

Avoid emotional purchases: many buy at the peak and sell in panic → analysis helps to remain rational.

Identify opportunities: enter early on a promising project (FA) or at a good graphical entry point (TA).

Manage risks: set stop-losses, know when to exit a position.

Optimize profits: take advantage of bullish trends (bull run) and avoid bearish traps.

👉 A good trader combines FA (choosing the right projects) + TA (choosing the right time to buy/sell).

👉 Join us now to better understand the exciting world of cryptocurrencies 💡🚀

#Crypto #Bitcoin #Ethereum