BTC and ETH TL;DR
- Bitcoin & Ethereum are up 5.03% and 0.61%, respectively, over the past fortnight.
- Greythorn views that Bitcoin will range between $24,000 and $26,000 over the upcoming week based on our option flow model.
Greythorn Option Flow Model
After the swings over the past fortnight due investor positioning around macro indicators regarding CPI & US interest rates, Bitcoin opened at $24,271 for the week.
From the perspective of gamma supply, increased volatility can be expected at $22,000, $23,000 and $27,000.
If price decreases, the first and the only strong support can be found at $24,000, followed by $21,000 and $20,000 as two weaker support levels should price decrease further. On the upside, $25,000 and $26,000 can be seen as significant resistances. $30,000 is the third resistance level, yet still relatively distant from current levels.
Despite a positive option supply, it has continued to decrease for a second consecutive fortnight. Liquidity is concentrated at $24,000, $25,000 and $26,000. Considering FOMC Minutes & EU CPI on Thursday, along with US & German GDP the day after, participants should be wary of any sharp moves in these sessions.
Greythorn believes that Bitcoin will range between $24,000 and $26,000 over the upcoming week based on our option flow model.
For an introduction to Greythorn Option Flow Model, please refer to our newsletter from 8th June 2022. https://greythorn.substack.com/p/greythorn-asset-management-newsletter
The information contained within this newsletter is purely our opinion and should not be considered by readers to constitute any form of financial or investment advice. We encourage readers to conduct their own research into any financial product that they are interested in and Greythorn will not incur any liability for potential losses.