Weekly Market Update – 3-6-2023

BTC Overview (Long- & Short Team TA and Policy)

This week (Feb. 27~Mar. 5), BTC saw a heavy upwards price movement. It is likely the current price range will continue for some time to come, and the key point to watch is whether the market will move above $25,000 again. BTC remains volatile and altcoins are healthy, making it a possible easy environment to trade.

BTC Overview

↓ BTCUSD monthly candlestick chart

This week (2/27-3/5), we will start with our surroundings awareness as we have a monthly update in between. February’s closing was confirmed with a small-substance pin bar-like candle as we had expected beforehand. March’s monthly leg is negative so far, but we still think it could be a pin bar OR a positive candle.

↓ BTCUSD daily candlestick chart

It is easy to see from the daily chart “BTC is in a range.” Specifically, it looks as if the price will range for a while in the $21,000 to $25,000 range, creating a horizontal axis. One scenario is the price moves in such a way as to create a holding pattern and contract with some volatility.

↓ BTCUSD 1-hour candlestick and divergence chart

Continuing from last week, if we also look at the divergence, we see just before the most recent sharp drop, the divergence was slightly upward and now it is diverging significantly downwards and as of 3/5 when writing this article. The FR is also at a negative level. If it can maintain the lower divergence, I think there is room for a little upside next week (3/6-3/12). We will continue to monitor this.

Also, continuing to buy altcoins at a time when BTC is about to make a short-term reversal can present a pretty good option, as altcoins appear healthy right now.

Continuing from a little while ago, the rise in $BTC has improved the overall sentiment in the cryptocurrency market, which makes altcoins easier to trade as they are more likely to rise.

From FR and other indicators, the market is not yet overheated, and it looks good to stand long altcoins for a while.

The tips for trading altcoins should be reiterated. However, as it is a pattern-association game, and once you get used to it, it is certainly easy to get used to. However, it is a pattern-association game, and once you get used to it, it is certainly easy to take advantage of. It is also impossible to take all the pumps, so take it easy when trading.

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

(2) Altcoins in the same genre as the altcoin in question showing a big rise in the recent past.

(3) Altcoins with high volume (if the tradeboard is too thin, stop orders are likely to be triggered by the wicks).

(4) Position with the daily 200MA; Altcoins are attracted to the 200MA and show a big rise when the price crosses the 200MA.

Be sure to trade with these four points in mind.

This past week (2/27 – 3/5), perhaps due to the increased volatility and violent price movements of BTC, there is the feeling altcoins have not yet fully grown (not following the rise of BTC), so we would like to trade aggressively for a rise from next week onward. If we can get a positive turnaround, especially on the monthly chart, it will increase the possibility of having a position with a slightly longer time horizon.