Bitcoin Price Predictions March Part 2

Greythorn Asset Management
2 min readMar 22, 2023

BTC and ETH TL;DR

  • Bitcoin & Ethereum are up 25.68% and 15.14%, respectively, over the past fortnight.
  • Greythorn views that Bitcoin will trade between $26,000 & $32,000 over the upcoming week based on our option flow model.
Figure 1: Greythorn Option Flow Model 210323. Source: Proprietary — Greythorn Research Team. Data: Deribit.

After price temporarily decreased following the news about SVB, Bitcoin found bullish momentum over the past ten days since the market digested news about the support from the Fed & allocated into blue chip cryptos as an alternative to USDC. Opening at $28,081 this week, Bitcoin has continued to find some liquidity around this level

From the perspective of option supply, increased volatility can be expected at several price levels, including $23,500, $24,500, $26,500 and the interval between $29,000 & $30,000.

If price moves to the downside, the first support is $27,000, followed by $26,000, $25,000 and $24,000 as weaker supports. If price rises further, $28,500 is a weak resistance, and the interval between $31,000 and $35,000 can be regarded as a significant resistance zone.

Option supply has increased, indicating a flatter market for the following week. Market activity has increased as observed by the magnitude of positioning at levels such as $27,000, $28,000 and $30,000.

There are several macro indicators to be released in the second half of the week, which can bring about a relative amount of uncertainty & guidance for markets going forward. British CPI, ECB President speaks, FOMC’s Interest Rate Decision & Press Conference on Wednesday; SNB Interest Rates, BoE MPC Meeting Minutes & US Initial Jobless Claims on Thursday; and PMIs for Germany & the UK on Friday.

Greythorn believes that Bitcoin will trade between $26,000 and $32,000 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

Disclaimer

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.

--

--

Greythorn Asset Management

Melbourne-based asset management firm specialising in Technology, Web3, Cryptocurrency, and Blockchain. Subscribe for our latest industry insights.