AI Demand Meets Energy Crunch: Bitcoin Miners Take Center Stage as Key Infrastructure – Bernstein

Bitcoin (BTC) rebounded to roughly $121,500 after dipping below $120,000, but short-term technicals and market sentiment suggest gains may be limited.

Hourly charts show BTC’s 50-, 100-, and 200-candle SMAs aligned bearishly, while consecutive lower highs signal weakening buying pressure.

Risk-off sentiment is evident in ETFs. The iShares iBoxx High Yield Corporate Bond ETF (HYG) broke below its bullish trendline from May and its 50-day SMA, reflecting falling demand for high-yield bonds. Banking ETFs echo the caution: the Financial Select Sector SPDR Fund (XLF) appears to be forming a rounding-top pattern, while the regional banking ETF (KRE) has slipped below its April bullish trendline.

Support and resistance: BTC has support at $120,000 and $118,000, while a move above $124,000 would reduce the likelihood of a deeper pullback. Combined technical and ETF signals point to a risk-averse market environment.