Bitcoin Surge Tests 200-Week MA as Russell 2000 Triggers Bull Trap

The recent surge in Bitcoin has triggered a successful test of its 200-week moving average (MA), indicating that long-term buyers can safely hold onto their assets. This 'buy' signal, which was first identified earlier, has paid dividends and provided a significant boost to short-term traders.

However, it's unlikely that the price will return to $65K anytime soon. The Russell 2000 index is playing out a 'bull trap', with its 20-day and 50-day MAs converging as support. While this pattern can be a reliable reversal indicator, it's not yet clear if the supporting moving averages will break.

The S&P 500 is also showing signs of life, with the index holding breakout support despite a mini 'bull trap' of its own. The Dow Jones Industrial Average and Nasdaq are range-bound, but technicals suggest that buyers may step in at the moving averages.