Our Stock of the Week is iShares Bitcoin Trust ETF (IBIT). IBIT is an exchange-traded fund (ETF) that tracks Bitcoin’s movement.
While there is much talk about the value of Bitcoin, it has no intrinsic value. It doesn’t produce income and has no cash flow. Standard valuation metrics that are used for stocks and bonds are not relevant.
The only way to value Bitcoin is to evaluate supply and demand, and the best way to measure supply and demand is to look at the charts. The charts only care about price action.
Although chart reading is more an art than a science, and some technicians may disagree, I believe the IBIT technical setup is very bullish. Following a deep correction in March and April, IBIT has rebounded sharply and is now testing the highs that it hit in December 2025 and January 2026. It is possible that it may fail as it hits this overhead resistance, but it has been basing just under the highs over the past week and is forming a handle on the large cup that has developed since January.
What needs to happen next is to move over the highs around $60, which is the pivot point. Breakout buyers are likely to jump in and generate momentum if there is a clean move on strong volume. Most technicians want to see the actual breakout, but I’m being more anticipatory here. The US debt downgrade is theoretically positive for cryptocurrencies, but after Bitcoin flew higher over the weekend, it is trading lower on Monday morning. I suspect that there will be buyers lurking on pullbacks.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in IBIT. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
