Some of the answers are quite fascinating, but here's my perspective on this. What truly moves the cryptocurrency market is fundamentals. Why? Because fundamentals are the determining factors for whether Bitcoin's price will rise or fall. Many traders eagerly anticipate events like the halving and ETF (Exchange-Traded Fund) proposals. If these events have a positive impact, we'll witness it in our trades, and that's when technical analysis comes into play. It's the moment we closely monitor candlestick patterns for signals on when to enter long or short positions. In essence, there isn't a strict mathematical rule that drives the market without sentiment playing a role.
You are right, but the cryptocurrency market is comprised of two things coin and tokens and then in coin, there comes BTC, which covers half of the crypto market. And the price of BTC changes with the change in demand and supply. Because it is a community-driven coin and follows the market sentiments. There is no centralized authority behind it that's why it works on market sentiments.
We have to do Fundamental analysis if we want to trade in BTC but if we want to trade in alts then Technical analysis is also necessary. But that's not how we get to decide whether to do TA or FA on this coin or not.
Because we do TA to analyze the current chart and we compare the old data of charts with the current one, and try to find similar patterns and on behalf of those patterns we get to decide whether we should take entry or not. We enhance our confidence by seeing the volume, demand, supply, and different things, and try to use different tools and indicators to analyze the current market's pattern.
