During the previous week, the price of BlackRock’s spot bitcoin (BTC) exchange-traded fund (ETF) fell by more than 11%, with trading volumes reaching the highest levels since mid-November, as reported by TradingView.
Over 331 million shares of the ETF, identified by the IBIT ticker on Nasdaq, exchanged hands as the fund’s price dropped below the January support level of $50.69, eventually sinking to $46.07, the lowest point since early November.
This development may be disappointing for bullish investors. A long-standing principle in the market states that price movements should be backed by trading volume. Thus, bearish price trends are deemed more significant when they coincide with a substantial increase in trading activity.
Moreover, data from Farside Investors indicates that over $1 billion was withdrawn from the ETF amid the price decline and a decreasing CME futures basis, which corresponds to the return on carry trades, triggering panic selling. Other U.S.-listed ETFs also saw significant outflows.
Nonetheless, IBIT continues to hold its position as the largest ETF globally, boasting $39.6 billion in assets under management.
Trading volume surged last Tuesday when IBIT fell below the horizontal support level of $50.69, signaling potential further losses.
The technical outlook remains bearish as prices continue to stay beneath the former support-turned-resistance level.
