In today's crypto watchlist the following trading pairs are covered: OP, MAGIC, INJ, RSS3, AXS, MASK, APT and DYDX. As a little extra I included an example for trappy price action of the stock $GNS.
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As the markets are ramping up right now it will be hard to get a good Short in without getting trapped and possibly squeezed out keep that in mind. So be aware of potential fakeouts in either direction.
And now, let‘s get into the charts!
Long
OP/USDT
I am still Long biased on this one, broke the $3 mark recently and is on its way to a new all time high. Meaning there is blue sky for the cryptocurrency of the layer-2-solution Optimism. A breakout above $3 means everybody will be in profits (besides Short traders) and the potential for this is huge. I am thinking this will go further.
Short
MAGIC/USDT
I am still short biased on MAGIC, the thing is this has a really thin order book on ByBit at least, meaning it does not take as much capital to spike it big. If you got any questions about liquidity or order book, feel free to ask me. Thinking this will still be hard to trade in the coming days, but with its high volatility will provide good opportunities if timed right. See the trading action below.
INJ/USDT
INJ has made a very steep run in the last weeks and has not really stopped going up. This might continue and push higher, but at some point will give back some of the profits in my opinion. It might not go back down all the way, but a decent drop is imminent. I will look for a good timing with good risk management for it to drop back to somewhere in the $3 range, where it topped out before on the daily chart. See the price action below and keep it on watch.
RSS3/USDT
Definitely on my Short list. I wrote a more detailed article yesterday, take a look at it if you would like a detailed explanation (https://niklasschomaker.com/2023/02/01/crypto-trading-spotlight-rss3-usdt/).
AXS/USDT
AXS has not moved well, despite the big ramp up today and yesterday. I imagine this falling even harder if the market gives back, so definitely a crypto for s Short position. Take a look below.
Undecided
MASK/USDT
MASK has been holding its gains from November really well and never got below the $2 mark. Now it’s gone on another run trading close to the $5 mark. This is an important psychological level. It might stop, but the possibility for further upside is still in play in my opinion, so be careful opening a position on this one in either direction. I am Short biased here, looking at the big picture.
On the shorter timeframes it does look like consolidation with potential upside and squeeze potential, so there is a play for both ways. On the 15 min chart of the cryptocurrency MASK you can see it forming a support (green line) with potential breakout potential above the $5 range. It is also a good play with a well defined risk level. You could also play it Short while hedging on the Long side or the other way around. Up to you what fits you best.
No change
APT/USDT
Not a lot has changed regarding APT, but the timing is important. I have not traded it well so far to say the least. It feels kind of heavy though to be honest. Take a look yourself below.
Relevant mentions
DYDX/USDT
I was writing a article on this one, but could not finish it before price action spiked above my target of $3 and went on to go up the $3.60s, keep it on watch!
Trappy price action
If you would like to know what trappy or fakeout price action looks like, I got a real time example for you. I am just watching stocks on the side and $GNS just provided a perfect example. Just breaking the high of the day by 1 cent and then dying in the minutes afterwards. Trappy/wicky action marked in the red boxes. If you would like to see how $GNS traded afterwards, you can take a look here: https://de.tradingview.com/chart/?symbol=AMEX%3AGNS .
I hope this can help you, have a nice rest of your day and feel free to reach out to me if you would like.
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Niklas
This is not financial advice, it is for educational purposes only!