IBIT Sentiment Stays Bearish For Two Straight Months

Key metric tied to BlackRock’s Nasdaq-listed spot BTC$108,783.53 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 optimistic on July 25 and has remained comfortably above zero since then, in accordance with information supply Market Chameleon. That’s two straight months of bearish put bias.

In different phrases, merchants have persistently favored protecting places over bullish calls for 2 months, signaling a sustained cautious or risk-averse outlook.

An identical put possibility bias was noticed from March 8 to April 21 this 12 months, a interval marked by sharp declines in each the spot worth and IBIT, primarily pushed by the commerce war-induced weak point on Wall Street.

IBIT’s uptrend has stalled

IBIT’s worth pattern has stalled since July, failing a number of occasions to rise above the $70 stage. Recently, it fashioned a “lower high” at $66, that means the latest peak worth was decrease than the earlier excessive close to $70.

This sample indicators weakening shopping for strain and means that sellers are gaining power. The formation of decrease highs typically signifies a possible downtrend or bearish momentum.

Read extra: Bitcoin ‘Buy The Dip’ Calls Surge, But Liquidity Trends Point to $107K as Potential Magnet