Bitcoin (BTC) Bounce price meets Bearish MA adjustment, hint-off clues from junk bonds and banking ETF
This is a study post by CoinDesk analyst and chartered market technician Omkar Godbole.
Bitcoin Back around $ 121,500 after sinking below $ 120,000 late Thursday. Further gains can be difficult to achieve or can prove short -lived for two factors.
First, the momentum indicators in the short -term charts are turned on. In the hourly chart, the 50-, 100-, and 200-candle simple moving average (SMA) are bearishly aligned, which is now stacked below the other-one classic bearish adjustment. In addition, the pattern of consecutive lower highs points to soften the purchase pressure.
Second, the main ETFs sign a sentiment at risk off.
The Ishhares Iboxx High Yield Corporate Bond ETF (HYG) has been damaged under its bullish trendline from May Lows and slipped under the 50-day SMA for the first time in six months.
While HYG holds the high-harvest (“junk”) corporate bonds, a downtrend here usually reflects rising investor avoidance at risk, along with investors away from riskier, lower bonds.
While the BTC is often called digital gold, it has a history that relates to stocks, reflecting the broader regional region in the market.
Meanwhile, in the financial sector, the financial sector of the SECT SPDR Fund (XLF), which has been tracking major banking stocks, has lost momentum since late August and appears to form a round pattern that suggests a bear market. Similarly, the Regional Banking ETF (KRE) has also been damaged under the bullish trendline established since April.
Basic levels
The BTC technical setup of the short charts of the duration, in conjunction with the main bonds and banking of ETFs, indicates a market environment that leaning against risk.
Immediate support for BTC is seen at $ 120,000 followed by $ 118,000. A move above $ 124,000 will weaken the case for a deeper pullback.
