BlackRock's Bitcoin ETF Faces Significant Decline Amid High Trading Volumes

According to CoinDesk, BlackRock's spot bitcoin (BTC) exchange-traded fund (ETF) experienced a significant decline last week, with prices dropping over 11%. This downturn was accompanied by the highest trading volumes since mid-November, as reported by data source TradingView. Over 331 million shares of the ETF, which is listed under the IBIT ticker on Nasdaq, were traded. The fund's price fell below the January support level of $50.69, eventually reaching $46.07, marking the lowest point since early November. This development may be disappointing for bullish investors. Traditionally, one of the key principles in the market is that price movements should be confirmed by trading volume. A bearish price action is considered more credible when it is accompanied by a significant increase in the number of shares or contracts traded on the exchange. Furthermore, data from Farside Investors indicated that investors withdrew more than $1 billion from the ETF as the price declined. The shrinking CME futures basis, which represents the return on carry trades, contributed to panic selling. Additionally, ten other U.S.-listed ETFs also experienced financial outflows. Despite these challenges, IBIT remains the largest ETF globally, managing assets worth $39.6 billion. Trading volume surged last Tuesday when IBIT broke below the horizontal support level of $50.69, signaling potential further losses. The technical outlook continues to be bearish as long as prices remain below the previous support level, which has now turned into resistance.