This is an analysis post by Coindesk analyst and chartered market technician Omkar Godbole.
Bitcoin jumped back to about $ 121,500 after dipping under $ 120,000 late Thursday. Additional gains can be difficult to achieve or may prove to be short -lived for two reasons.
First, momentum indicators on short -term charts have become bearish. On the hourly map, the 50-, 100 and 200-Candle-single movement average (SMAs) has adjusted Bearishly, now stacked one under the other-one classic bearish configuration. In addition, the pattern points with consecutive lower heights to the weakening purchase pressure.
Secondly, key-ETFs signal a risk-off mood.
Ishares Iboxx High Yield Corporate Bond Etf (Hyg) is broken under his Bullish Trendline from May Lows and slid during his 50-day SMA for the first time in six months.
Since Hygge has a high yield (“junk”) corporate bonds, a downwardly reflect rising investor aversion to risk, where investors move away from risky, lower classified bonds.
While BTC is often called digital gold, it has historically correlated with stocks, reflecting a wider market risk.
Meanwhile in the financial sector, the Financial Select Sector SPDR FUND (XLF), which tracks larger banking, has lost speed since the end of August and seems to form a rounding pattern that suggests a bear market. Similarly, the regional bank ETF (KRE) has also broken during its Bullish Trendline established since April.
Key levels
BTC’s Bearish Technical Setup on Card Dimension Card, combined with caution in key bonds and bank -TFs, indicates a market environment that leans towards risk aversion.
The immediate support for BTC is seen at $ 120,000 followed by $ 118,000. A step over $ 124,000 would weaken the case for a deeper withdrawal.
