Key metric tied to BlackRock’s Nasdaq-listed spot exchange-traded fund, IBIT, has been flashing warning indicators for 2 straight months.
IBIT’s one-year put-call skew, a measure of market sentiment or pessimism, flipped constructive on July 25 and has remained comfortably above zero since then, in accordance with information supply Market Chameleon. That is two straight months of bearish put bias.
In different phrases, merchants have constantly favored protecting places over bullish calls for 2 months, signaling a sustained cautious or risk-averse outlook.
The same put choice bias was noticed from March 8 to April 21 this yr, a interval marked by sharp declines in each the spot value and IBIT, primarily pushed by the commerce war-induced weak point on Wall Road.
IBIT’s uptrend has stalled
IBIT’s value pattern has stalled since July, failing a number of instances to rise above the $70 degree. Just lately, it fashioned a “decrease excessive” at $66, which means the latest peak value was decrease than the earlier excessive close to $70.
This sample indicators weakening shopping for strain and means that sellers are gaining energy. The formation of decrease highs usually signifies a possible downtrend or bearish momentum.
Learn extra: Bitcoin ‘Purchase The Dip’ Calls Surge, However Liquidity Tendencies Level to $107K as Potential Magnet