Bitcoin Rebounds to $121,500 Amid Bearish Indicators and Risk-Off Sentiment
Bitcoin (BTC) Update
- BTC has rebounded to approximately $121,500 after falling below $120,000.
- Short-term bearish momentum indicators are present on the hourly chart.
- The 50-, 100-, and 200-candle simple moving averages are aligned bearishly.
- A pattern of consecutive lower highs suggests reduced buying pressure.
- The iShares iBoxx High Yield Corporate Bond ETF (HYG) is showing a risk-off sentiment, breaking below its bullish trendline and 50-day SMA.
- This downtrend reflects rising aversion to riskier investments.
- BTC, often compared to digital gold, is correlated with stocks, indicating broader market risk sentiment.
Financial Sector Insights
- The Financial Select Sector SPDR Fund (XLF) shows a loss in momentum, forming a bearish rounding-top pattern.
- The regional banking ETF (KRE) has also broken below its bullish trendline from April.
Key Levels for BTC
- Immediate support is at $120,000, followed by $118,000.
- A rise above $124,000 would challenge the bearish outlook.