Weekly Market Update – 2-6-2023

BTC overview (Long and Short Term TA and Policy)

BTC continued to move strongly this week (1/30–2/5), without dropping significantly. However, it is still a risky move to enter a long position in BTC, as it has reached the $25,000 area, a level at which it is likely to be sold off. It would be better to wait and see. If it makes a big push, I would like to buy.

One concern is that the Feb. 3 employment report has raised concerns about a slight increase in interest rates (in the direction of buying the dollar) again.

BTC Overview

↓ BTCUSD monthly candlestick chart

This week (1/30–2/5), we are in February, and with the monthly update behind us, we will assess our customary environmental awareness.

January’s monthly update was a big positive, and February is also positive so far, but it is a bit doubtful that it will hold, rather, as previously mentioned, the image is of a slight push.

Continuing from the previous week, the rise in $BTC has improved the overall sentiment in the virtual currency market, making altcoins easier to trade as they are more likely to rise. FR and other factors suggest that the market is not yet overheated, and it looks good to stand long altcoin for a while.

The tips for trading altcoins should be reiterated. The difficulty in the current market is not all altcoins are going up equally at the same time, so the skill of screening alts by (2) (below) is necessary, but it is a pattern association game, so it is certainly easy to comprehend once you get used to it. Certainly, something to take advantage of if you can. It is also impossible to participate in altcoin pumps, so take it easy when trading.

(1) Alts which have not been listed on Binance for a long time and have not been cleaned up too much.

(2) Alts in the same genre as the altcoin showing a big rise recently.

(3) Alts with high volume (if the trade board is too thin, it is easy for stop orders to be cut by the wicks)

(4) Position with the daily 200MA

Keep in mind alts are attracted to the 200MA and show a big rise when the price crosses the 200MA

It is best to trade with these four points in mind.

With $OP and $MAGIC, which were mentioned last week as specific examples of (1) above, showed strong upward movement this week, and it was easy to see the light of the upward movement.

As for $OP, it is easy to see the resistance was used as support and a lower wick was used to make both the monthly and weekly positive. As for $OP, I also made a trade to load a long position on this lower wick and was able to make a profit.