Bitcoin Breakout Holds as Markets Experience Mixed Results
Markets are experiencing a mixed bag of results as Bitcoin holds its breakout. The Russell 2000 index is on track to test its 200-day moving average, having failed to reverse at an early September swing low. This could potentially lead to a crash scenario in the event of a deeply oversold and net bearish situation.
The equal-weighted S&P 500 is holding onto its 20-day moving average but has yet to challenge $7,800. Meanwhile, the unweighted S&P stochastics are deeply oversold, while the weighted S&P's stochastics have yet to challenge the bullish mid-line. This suggests reason for optimism as long as $7,600 holds as support.
The Nasdaq is threatening to gap lower, with its 20-day moving average being its initial target. However, technicals are net bullish, suggesting that a gap lower could offer an aggressive buy on the moving average test.
Bitcoin has blinked and moved lower, but Tuesday's doji after yesterday's move lower doesn't inspire confidence in a recovery. The $82.5K level is being eyed as a potential support, but if it fails, a new 'bull trap' could be formed, leading to a test of $77K.