This is an analysis post by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

Bitcoin (BTC) bounced back to around $121,500 after dipping below $120,000 late Thursday. Further gains may be difficult to achieve or could prove short-lived for two reasons.

First, momentum indicators on short-term charts have turned bearish. On the hourly chart, the 50-, 100-, and 200-candle simple moving averages (SMAs) have aligned bearishly, now stacked one below the other – a classic bearish configuration. Additionally, the pattern of consecutive lower highs points to weakening buying pressure.

Second, key ETFs are signaling a risk-off sentiment.

The iShares iBoxx High Yield Corporate Bond ETF (HYG) has broken below its bullish trendline from May lows and slipped beneath its 50-day SMA fo

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