The recent 24 hours saw a brutal downturn in the crypto market, with BTC dropping below $60k and alts plummeting 30%–50%. The primary trigger was the Iran drone attack on Israel. During times of conflict, commodities like oil and gold typically surge, leading to high inflation and a bearish outlook for stocks and crypto due to the anticipation of no rate cuts. Consequently, crypto assets were heavily sold off as investors feared the potential inflationary impact of the conflict. As BTC and alts nosedived, leveraged positions were liquidated, exacerbating the downward spiral. This scenario mirrors previous instances like the Covid crash in March 2020 and the Russia-Ukraine war, where panic selling ensued but was followed by a rebound within a month. Some media reports suggest Iran's allies were forewarned, indicating a premeditated market manipulation to capitalize on low weekend volume. Following the panic selling, the market rebounded as buyers capitalized on the dip, highlighting the volatility and opportunistic nature of crypto trading. The key takeaway is to avoid leveraged trades and stick to spot positions to minimize risk and maximize gains. Currently, BTC is trading above $63k with strong support at $60k, with additional support at $56k-$58k where new whales (ETF buyers) entered the market. History shows that after every black swan event, the crypto market experiences parabolic runs, keeping in mind that BTC halving is in 5 days. Suggesting a potential rebound this time as well. Remember to hit like if you found this analysis helpful.

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