Bitcoin Breakout Holds Steady as Markets Show Mixed Signals

Markets are showing mixed signals as Bitcoin's breakout attempt holds steady. However, this stability is not reflected in other areas of the market.

The weighted S&P 500 has yet to challenge $7,800 and stochastics have yet to touch the bullish mid-line. While technicals are mixed, there's reason for optimism as long as support at $7,600 holds.

On the other hand, the unweighted S&P 500 is struggling to mount a bounce after being deeply oversold and net bearish. This index has closed with a small hammer but its 200-day MA remains in sight.

The Dow Jones Industrial Average (DJIA) is on a fast track to test its 200-day MA, which could potentially lead to a crash scenario if it fails to hold. Meanwhile, the equal-weighted S&P 500 has an aggressive long setup with a break of $8,500 and a tight stop.

Bitcoin's price move lower on Monday was followed by a stalled recovery attempt on Tuesday. The 20-day MA is coming into play, and if the price closes below $82.5K, it could be considered a 'bull trap' with a potential test of $77K.