Bitcoin BTC Price Recovery Faces Bearish Moving Average Setup As Key ETFs Signal Risk-Off Sentiment

Bitcoin (BTC) has rebounded to approximately $121,500 after briefly falling below $120,000. However, technical analysis suggests this recovery might be limited. Short-term charts show bearish momentum indicators with the 50, 100, and 200-period simple moving averages (SMAs) aligned in a classic bearish pattern. Concurrently, major ETFs like the iShares iBoxx High Yield Corporate Bond ETF (HYG) are indicating risk aversion, having broken key support levels. The Financial Select Sector SPDR Fund (XLF) and regional banking ETF (KRE) also show weakening momentum. Key BTC support levels are at $120,000 and $118,000, while resistance sits at $124,000.