A critical indicator for BlackRock's spot Bitcoin ETF, IBIT, has signaled caution for two consecutive months. The fund's put-call skew, a key sentiment gauge, turned positive on July 25 and has remained elevated, reflecting sustained bearish bias. This trend indicates traders consistently prefer protective put options over bullish calls, highlighting a prolonged risk-averse market stance. A similar pattern occurred earlier this year, coinciding with significant price declines in both Bitcoin and IBIT amid Wall Street volatility.
IBIT's Price Momentum Stalls
IBIT's upward trajectory has stalled since July, repeatedly failing to breach the $70 resistance level. The recent formation of a lower high at $66 signals weakening buying interest and strengthening selling pressure, often a precursor to a bearish trend reversal.
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