BTC Price Recovery Faces Resistance from Bearish MA, ETF Flows Suggest Caution

Bitcoin (BTC) bounced to $121,500 after dipping below $120,000, but short-term indicators suggest further gains may be limited.

On hourly charts, the 50-, 100-, and 200-candle SMAs have aligned in a bearish stack, while consecutive lower highs indicate weakening buying pressure.

Broader market signals are also cautious. The iShares iBoxx High Yield Corporate Bond ETF (HYG) recently broke below its bullish trendline from May and slipped under its 50-day SMA, reflecting rising risk aversion as investors move away from high-yield bonds.

In equities, the Financial Select Sector SPDR Fund (XLF) appears to be forming a rounding-top pattern, signaling potential weakness in major banking stocks, while the regional banking ETF (KRE) has broken its bullish trendline from April.

BTC’s immediate support levels are $120,000 and $118,000, while a sustained move above $124,000 could reduce the risk of a deeper pullback. Short-term charts and ETF trends indicate a risk-averse market environment.