It’s options expiration week this week for Bitcon with over $2 Billion worth of options expiring on Friday. With the max pain point for the April expiry sitting at a concentrated range of $34,000 to $38,000 as per coinglass analytics - there is a decent probability that market makers could look to drive Bitcoin into that range if prices are within 2-3% come Thursday. Something market participants should keep an eye on.
As the market comes under pressure, we wanted to highlight some key support levels for bitcoin prices - namely the Microstrategy Support line - which is the average purchase price of Microstrategy’s BTC holdings. Currently sitting at $30,200. This is an important level as institutional investors will likely look to defend this price. Given how bitcoin has been holding up in the current geopolitical environment, it would not be surprising to see opportunistic institutional investors take advantage of the opportunity to add to their portfolios at “Saylor” prices.
U.S. mega capitalization companies - Amazon, Google, Apple and Microsoft will release corporate earnings this week. In addition to the mega caps, about 180 other S&P 500 companies will release earnings this week. Earnings will echo senior management’s corporate outlooks which will provide investors with forward looking projections of different sectors within the economy. These corporate earnings come on the back of rising yields, staggering inflation, COVID resurgence and global supply issues in addition to the Fed’s hawkish tone that has investors on edge. With the Fed’s monetary policy putting pressure on equities, investors will look for a solid earnings week and strong corporate outlooks to make the case to keep supporting markets at current levels. Market data will be released this week, such as initial and continuing jobless claims, real gross domestic product (SAAR)(first estimate), the Chicago PMI, University of Michigan consumer sentiment index (final), University of Michigan 5-year inflation expectations (final) and PCE price index. This week will definitely be a busy week with lots of data releases and corporate earnings that will grant investors a broader picture to assess the global equity markets and decide directional investments going forward.
We hope you enjoyed reading and as always, we wrap up with a summary of the upcoming economic data and earnings reports for the week:
Wednesday:
8:30 AM EST - Advanced report on international trade in goods
10:00 AM EST - Pending home sales index and rental vacancy rate
Thursday:
8:30 AM EST - Initial jobless claims, continuing jobless claims, real gross domestic product (SAAR) (first estimate), real final sales of domestic product (SAAR)(first estimate)
Friday:
8.30 AM EST - Employment price index, PCE price index, core PCE price index, PCE price index (year-over-year), core PCE price index (year-over-year), nominal personal income, nominal consumer spending, real disposable incomes, and real consumer spending
9:45 AM EST - Chicago PMI
10:00 AM EST - University of Michigan consumer sentiment index (final), University of Michigan 5-year inflation expectations (final)
It's a big week coming up, and as always, we'll keep you posted on any relevant news throughout the week right here and from our Twitter account.
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