Bitcoin options traders chase $110K, but roadblocks lie ahead

• Choices analysts downplayed Bitcoin’s breakout prospects within the brief time period. 
• U.S. spot BTC ETFs merchandise noticed +$580M in outflows previously week. 

Bitcoin [BTC] Choice merchants have elevated bets on BTC rallying to $110K by the tip of March, however analysts have cautioned of an prolonged sideway construction and attainable losses. 

In line with the Choices analytics platform Amberdata, merchants had doubled down on $110K March calls (bullish bets) in February. Nonetheless, the agency projected that the bets may face losses. 

“Wanting on the month-to-date flows for on-screen merchants… the shopping for of March $110k calls has been essentially the most energetic commerce. I can’t assist however suppose volatility (Vol) consumers are going to get burned right here.”

Supply: Amberdata

Amberdata’s Greg Magadini pinned his sideway projection to bearish meme-coins headlines and BTC’s lukewarm response to current bullish updates like Abu Dhabi’s huge bid on BlackRock’s IBIT. 

“With bearish memecoin market drag (a supply of bearish headlines) such because the $Libra drop, pump-fun mania and rising provide of alts and I see this market in stand-still. Collectively this reinforces my “sideways” market, decrease volatility market thesis.”

BTC range-bound

QCP Capital, one of many world’s main crypto choices desks, additionally bolstered the prolonged worth vary outlook. A part of the day by day market replace read, 

“The market stays hesitant to tackle decay even at low vol ranges, paying homage to BTC’s range-bound worth motion in Q2-Q3 final yr. As a substitute, flows have primarily targeted on near-dated volatility promoting and vary buying and selling fairly than positioning for a serious breakout.” 

An analogous warning for BTC bulls was flagged by the BTC dominance. In line with crypto analyst Mathew Hyland, there was a bearish divergence within the weekly chart, suggesting that BTC’s market share may drop quickly. 

Supply: X

That mentioned, BTC was valued at $95K at press time and has been under $100K for almost two weeks. The chance-off sentiment has additionally been noticed throughout U.S. spot ETF merchandise.

Previously week, the merchandise noticed mixed outflows of $585.65M. The muted demand from the ETF merchandise may cap BTC’s recovery efforts. 

Supply: Soso Value