Should You Buy IBIT Stock Now? BlackRock’s Bitcoin ETF Faces Headwinds

BlackRock's Bitcoin ETF stumbles—is this a buying opportunity or a warning sign?

The iShares Bitcoin Trust (IBIT) was supposed to be Wall Street's golden ticket into crypto. But with flows slowing and competitors gaining ground, even Larry Fink's magic touch seems to be fading.

Here's what the charts won't tell you...

While the suits at BlackRock scramble to explain slowing inflows, Bitcoin maximalists are having a field day. 'Told you so' never sounded so sweet—especially when traditional finance's 'safe' crypto play starts looking shaky.

One thing's certain: in crypto, even the mightiest whales can get caught swimming against the tide. Maybe that's why Satoshi invented blockchain—no bailouts, no excuses, just code.

Is the IBIT stock a good buy today?

The IBIT ETF moves in sync with the performance of Bitcoin. As such, the best way to predict its trajectory is to analyze bitcoin price action.

The daily chart above shows that bitcoin price has pulled back since July 14. It dropped from a high of $123,192 to a low of $112,000, its highest swing on May 23rd.

Bitcoin has formed a bullish flag pattern, a common continuation signal. This pattern consists of a vertical rally followed by a descending channel and often leads to a breakout.

BTC has also completed a break-and-retest pattern, moving back to $112,000, a key support level. This type of retest is often seen as a signal of trend continuation.

Additionally, Bitcoin has done a mean reversion by declining to the 50-day Exponential Moving Average. It has also retested the ascending trendline connecting the lows since April.

Therefore, the most likely scenario is a rebound toward the all-time high of $123,192. A break above that level WOULD confirm a bullish breakout and potentially push BTC to $125,000. If this plays out, the IBIT ETF is also expected to rebound, as it closely tracks Bitcoin’s price.