Bitcoin, Ethereum: As Volatility Persists, Here Are Crucial Support, Resistance Zones To Watch This Week

Cryptocurrencies witnessed significant volatility since Thursday in the backdrop of negative news plaguing the financial sector that saw Silvergate Capital Corp SI shut down and a funding crisis erupts at the SVB Financial Group SIVB.

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After having fallen below the $20,000 mark, Bitcoin BTC/USD is back above $22,500 on Monday while Ethereum ETH/USD, too, was trading higher after having fallen below the $1,400 level on Friday. As the banking crisis continues, here's a look at crucial support and resistance zones factored in by the options market for the week:

1. Bitcoin: Options market data indicate the token is witnessing multiple levels of resistance with significant open interest build-up seen at these strikes. The $23,000 and $25,000-Call strikes on options expiring this Friday are witnessing a significant open interest build-up, indicating the levels could act as a stiff resistance. If Bitcoin manages to breach this level, the $26,500 level will prove a major hurdle to cross as maximum open interest build-up is seen at this level. On the downside, the $17,000-$18,000 zone is expected to act as a decent support for the week.

2. Ethereum: Options market data indicates the $1,700-$1,800 zone will be a crucial resistance area for the token this week as shown by open interest build-up in out-of-the-money Call strikes across two platforms. On the downside, the $1,400-$1,450 area provides decent support for the short term.

It is worth noting that open interest data only provides a fair idea about support and resistance levels. Any major news or macro event could lead to a significant movement in the asset prices which in turn could shift the open interest, especially during times like these when crisis prevails.

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Posted In: CryptocurrencyNewsOptionsMarketsBitcoinEthereum
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