Markets Mixed as Bitcoin Breakout Holds, Russell 2000 Tests 200-Day MA
Markets are experiencing a mixed bag of results as Bitcoin holds its breakout. The Russell 2000 is on track to test its 200-day moving average, while the equal-weighted S&P 500 closed with a small hammer but faces a more likely test at 8,500.
The weighted S&P 500, however, is holding its 20-day moving average and has yet to challenge 7,800. Technical indicators are mixed, but stochastics for the weighted S&P have not challenged the bullish mid-line, while those for the unweighted S&P are deeply oversold.
Bitcoin blinked after Monday's move lower and attempted to recover its lost ground on Tuesday, but the attempt stalled out. The 20-day moving average looms large at $82.5K, with a close below this level potentially leading to a 'bull trap' and a test of $77K.
As markets navigate this uncertain landscape, investors are advised to approach the next few days with caution if they are long, considering taking profits in case things take a turn for the worse. Despite this, Bitcoin remains bullish in the long-term, but its right-hand base may take longer than expected to form.