Bitcoin (BTC) Price Bounce Meets Bearish MA Configuration, Risk-Off Hints From Junk Bonds and Banking ETFs

Bitcoin (BTC) is currently experiencing a bounce to around $121,500 after dipping below $120,000. However, this recovery faces challenges as the short-duration price charts display a bearish configuration. The hourly chart shows a classic bearish setup with 50-, 100-, and 200-candle simple moving averages (SMAs) aligned downward, alongside a pattern of lower highs indicating declining buying pressure. Moreover, key ETFs signal a risk-off sentiment. The iShares iBoxx High Yield Corporate Bond ETF (HYG) has broken below its bullish trendline and its 50-day SMA for the first time in six months, indicating investor aversion to risk. The Financial Select Sector SPDR Fund (XLF) tracking major banking stocks is losing momentum, suggesting a bear market is forming, while the regional banking ETF (KRE) has also fallen below its established bullish trendline. Given the bearish setup and caution in key ETFs, possible immediate support for BTC lies at $120,000 and $118,000, with resistance at $124,000 undermining a deeper pullback.

Source 🔗