Crypto
Russell 2000 and Bitcoin Break Support, 'Bear Trap' in Sight
The Russell 2000 and Bitcoin have broken below key support levels.
The Russell 2000 delivered on its 'bull trap' as the reversal came back to retest support before undercutting $288. The index now looks set to test its 200-day moving average, with selling volume not excessive but still a concern.
The Russell 2000's stochastic oscillator is oversold, which can remain so for an extended period in a bear market. However, a 'bear trap' would be bullish if the index closes above $287.
In the intermediate term, a tradable bounce is due by the end of the year, and a 'bull trap' would set up nicely for one.