Bitcoin Bulls Bet Big on $110K March Rally Despite Warnings

Bitcoin options traders have been increasingly betting on the cryptocurrency rallying to $110,000 by the end of March. However, analysts have warned of potential roadblocks, including an extended sideways structure and possible losses.

According to data from the Options analytics platform Amberdata, traders have doubled down on $110,000 March calls, indicating bullish bets. However, the firm has projected that these bets could face losses. Greg Magadini, an analyst at Amberdata, has pinned his sideways projection to bearish meme-coins headlines and Bitcoin's lukewarm reaction to recent bullish updates.

QCP Capital, one of the world's leading crypto options desks, has also reinforced the extended price range outlook. The daily market update read, "The market remains hesitant to take on decay even at low vol levels, reminiscent of BTC's range-bound price action in Q2-Q3 last year. Instead, flows have primarily focused on near-dated volatility selling and range trading rather than positioning for a major breakout."

A similar warning for Bitcoin bulls was flagged by crypto analyst Mathew Hyland, who noted a bearish divergence in the weekly chart, suggesting that Bitcoin's market share could drop soon. Despite these warnings, Bitcoin was valued at $95,000 at press time and has been below $100,000 for nearly two weeks. The risk-off sentiment has also been observed across U.S. spot ETF products, with combined outflows of $585.65 million in the past week.