Prices for BlackRock's spot Bitcoin (BTC) exchange-traded fund (ETF) fell over 11% last week, while volumes reached their highest level since mid-November, according to data source TradingView.
BlackRock's Bitcoin ETF Posts Highest Trading Volume in 3 Months
More than 331 million shares of the ETF, which trades on Nasdaq under the ticker symbol IBIT, changed hands as the fund's price fell below January support of $50.69 and eventually fell to $46.07, its lowest level since early November.
This could be a disappointing development for bulls. For decades, one of the cardinal rules of the market has been that price movements must be confirmed by trading volume.
This means that a downward price movement is considered to have occurred when there is a significant increase in the number of shares or contracts traded on the exchange.
Additionally, data from Farside Investors shows investors pulled more than $1 billion from the ETF as the price drop and the shrinking CME futures basis, which represents the return on carry trades, led to panic selling. Ten other U.S.-listed ETFs also lost money.
Still, IBIT remains the world's largest ETF with $39.6 billion in assets under management.
Trading volume increased last Tuesday as IBIT broke below the horizontal support at $50.69, signaling further losses. The technical outlook remains bearish as prices remain below the former support-turned-resistance.
*This is not investment advice.
