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 optimistic on July 25 and has remained comfortably above zero since then, in keeping with knowledge supply Market Chameleon. That is 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.
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 worth and IBIT, primarily pushed by the commerce war-induced weak spot on Wall Avenue.
IBIT’s uptrend has stalled
IBIT’s worth pattern has stalled since July, failing a number of occasions to rise above the $70 stage. Just lately, it fashioned a “decrease excessive” at $66, which means the latest peak worth was decrease than the earlier excessive close to $70.
This sample alerts weakening shopping for strain and means that sellers are gaining power. The formation of decrease highs typically signifies a possible downtrend or bearish momentum.
Learn extra: Bitcoin ‘Purchase The Dip’ Calls Surge, However Liquidity Tendencies Level to $107K as Potential Magnet
