Bitcoin Faces Resistance as Risk Aversion Surfaces in Bonds and Banking ETFs
Bitcoin (BTC) rebounded to roughly $121,500 after dipping below $120,000, but technical indicators and market sentiment suggest gains may be limited.
Hourly charts show BTC’s 50-, 100-, and 200-candle SMAs aligned bearishly, with consecutive lower highs signaling weakening buying pressure.
Risk-off sentiment is evident in ETFs. The iShares iBoxx High Yield Corporate Bond ETF (HYG) broke below its bullish trendline from May and its 50-day SMA, reflecting declining appetite for high-yield bonds. Banking ETFs mirror this caution: the Financial Select Sector SPDR Fund (XLF) shows signs of a rounding-top pattern, while the regional banking ETF (KRE) has slipped below its April bullish trendline.
Support and resistance: BTC finds support at $120,000 and $118,000, with resistance near $124,000. Combined technicals and ETF trends indicate a risk-averse market environment.
