Key Points
- Bitcoin option traders have increased bets on BTC reaching $110K by March end, despite analysts’ caution.
- U.S. spot BTC ETFs saw outflows of over $580M in the past week.
Bitcoin [BTC] option traders are putting their money on a rally to $110K by the end of March.
However, analysts warn of a possible extended sideways structure and potential losses.
Increased Bets Despite Warnings
According to Amberdata, an Options analytics platform, traders doubled down on $110K March calls (bullish bets) in February.
Despite this optimism, the firm anticipates these bets could face losses.
Amberdata’s Greg Magadini attributes his sideways market projection to bearish meme-coin headlines and BTC’s tepid response to bullish updates such as Abu Dhabi’s substantial bid on BlackRock’s IBIT.
Range-Bound BTC
QCP Capital, a leading crypto options desk, also supports the extended price range outlook.
The daily market update noted a hesitation to take on decay even at low volatility levels, similar to BTC’s range-bound price action in the second and third quarters of last year.
Crypto analyst Mathew Hyland flagged a similar warning for BTC bulls, citing a bearish divergence in the weekly chart.
This suggests that BTC’s market share could drop soon.
At the time of writing, BTC was valued at $95K and has been below $100K for nearly two weeks.
The risk-off sentiment is also evident across U.S. spot ETF products.
Over the past week, these products experienced combined outflows of $585.65M.
This reduced demand from the ETF products could limit BTC’s recovery efforts.