In this week's Crypto Insight I discussed...
BITCOIN NOT TRADING LIKE A SAFE HAVEN
As suspected, crypto remained strongly correlated with risk assets on the latest down move, rejecting key resistance zone and failing to provide any “safe haven” properties.
INSTITUTIONAL BUYING LENDING SOME SUPPORT
We have started to see a turn in ETF flows suggesting some institutional buying recently and this may also explain why we haven’t retested the Januray lows.
SIGNS OF SHORT TERM DOWNSIDE EXHAUSTION
Personally I think crypto is getting close to putting in a short term bottom as sentiment is quite beaten up and speculative length has been largely unwound on Russia fears.
Key takeaways from the BTC on-chain metrics this week:
1. Number of active entities is languishing at the lower end of of an upward sloping channel, suggesting many shorter term players have thrown in the towel.
2. Short term cost basis in the 42k to 50k range has likely led to some panic selling on Russia fears.
3. Losses held by STH in proportion to BTC market…
CRYPTO VOL ANALYSIS
We are seeing a significant implied/realized spread after short dated implied vol spiked on Russia concerns. This has not really been seen for a while as vols have been trading very depressed due to selling flows without some exogenous event to keep people fearful.
Filmed on on Tuesday 22nd February 2022.
Want to listen to our full discussion? Sign up for a 14 day free trial with Options Insight today for access to our Members Dashboard where you’ll find a recording of the full call as well as my market report and top trades:
Our trading call takes place at 1:30pm (BST) over Zoom to participants around the world with a copy of the recording post event for you to view at your leisure.
WHAT IS MACRO INSIGHT?
Macro Insight is an exclusive, members only community, hosted by veteran trader, Imran Lakha. When you join you will receive access to his weekly trading call, benefit from networking with other members, receive weekly marketing reports and be added to a private chat room which offers daily, realtime support and discussion. In the weekly MACRO INSIGHT trading call, veteran trader Imran Lakha, walks you through his macro cross-asset watchlist, discusses the main market moving narratives, shares his charts and the top trades that he is doing for his own portfolio. By joining a community of like-minded traders you can discuss trade ideas, increase your confidence and take advantage of opportunities in the market. This is a unique perspective into how a seasoned professional identifies opportunities, executes trades and manages risk. Every call ends with a live Q&A and an opportunity to share your ideas and receive coaching and guidance for your own trading.
DISCLAIMER OPTIONS INSIGHT CONTENT is presented for educational purposes only. The information presented by OPTIONS INSIGHT should NOT be construed as investment advice. Always consult a licensed investment professional before making important investment decisions. The opinions expressed by OPTIONS INSIGHT are those of its founder Imran Lakha who shall NOT be liable for losses resulting from investment decisions based on information or viewpoints presented by Options Insight.