- Bitcoin options traders bet on $110K, but analysts warn of resistance.
- BTC struggles below $100K amid weak ETF demand and bearish signals.
- Market hesitation and range-bound trading could delay a major breakout.
Bitcoin options traders have placed bold bets on a rally to $110K by March. Confidence is growing, but major obstacles could slow progress. Analysts warn that sideways movement, weak BTC ETF demand, and market hesitation may limit upside potential. Amberdata reported a surge in $110K call options during February. This wave of bullish bets shows strong optimism, but risks remain. The analytics firm cautioned that many of these trades could end in losses.
BTC Trapped in a Tight Range
QCP Capital, a top options trading desk, highlighted hesitation across the market. Despite low volatility, most traders avoid long-term bullish positions. Instead, short-term strategies like volatility selling and range-bound trading have taken priority. This cautious approach mirrors BTC’s price behavior during the middle of last year.
Technical analysis adds to the concerns. Analyst Mathew Hyland identified a bearish divergence in BTC dominance. A shrinking market share could weaken bullish momentum, making a rally harder to sustain. Capital shifting into other assets often slows BTC’s ability to climb higher.
ETF Outflows Add More Pressure
Despite strong sentiment from options traders, BTC has struggled to break key price levels. Prices have hovered around $95K for weeks, with no clear sign of an immediate breakout. Uncertainty continues to weigh on investor decisions.
Bitcoin ETFs have seen massive capital outflows, adding to the challenges. U.S.-based spot ETFs recorded $585.65 million in withdrawals last week. Weak institutional demand could stall further gains, keeping BTC below the $100K mark.
Excitement remains, but roadblocks stand in the way. The push toward $110K faces resistance, fading institutional interest, and cautious investors. Will bulls force a breakout, or will pressure send prices lower? The next few weeks will reveal the answer.
