Key metric tied to BlackRock's Nasdaq-listed spot bitcoin (BTC) exchange-traded fund, IBIT, has been flashing warning signs for two straight months.

IBIT's one-year put-call skew, a measure of market sentiment or pessimism, flipped positive on July 25 and has remained comfortably above zero since then, according to data source . That's two straight months of bearish put bias.

In other words, traders have consistently favored protective puts over bullish calls for two months, signaling a sustained cautious or risk-averse outlook.

A similar put option bias was observed from March 8 to April 21 this year, a period marked by sharp declines in both the spot price and IBIT, primarily driven by the trade war-induced weakness on Wall Street.

IBIT's uptrend has stalled

IBIT’s price trend has stalled since July, failing multiple times to rise above the $70 level. Recently, it formed a "lower high" at $66, meaning the recent peak price was lower than the previous high near $70.

This pattern signals weakening buying pressure and suggests that sellers are gaining strength. The formation of lower highs often indicates a potential downtrend or bearish momentum.

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