Bitcoin (BTC) returned above $41,000 ahead of the Wall Street open on March 16 as good news from Asia and Russia buoyed stocks.
BTC on track to close the week higher
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair kept $41,000 in focus after the Chinese government promised new economic support.
Beijing announced the move after weeks of tumultuous action in Chinese markets, with tech stocks suffering particularly.
Now, Vice Premier Liu He said, the government would “actively publish market-friendly policies,” media outlets including the South China Morning Post reported.
The result was a strong rebound in local markets, with Hong Kong’s Hang Seng Index gaining more than 20% on the day.
US-listed Chinese stocks jump as Beijing pledges policy support. Hang Seng Tech index gained 22%. #China‘s top policymaker said country would roll out measures to boost the econ & keep its capital markets stable. US-listed shares of Pinduoduo jumped 31%, JD Alibaba both up ~20%. pic.twitter.com/oqshIalFJi
— Holger Zschaepitz (@Schuldensuehner) March 16, 2022
US-listed Chinese stocks jump as Beijing pledges political support. The Hang Seng Tech Index gained 22%. China’s top policymaker said the country would implement measures to boost the economy and keep its capital markets stable. US-listed Pinduoduo shares up 31%, JD Alibaba both up ~20%
Bitcoin also reacted, breaking higher amid a tense geopolitical atmosphere of warfare in Europe and an impending announcement on US Federal Reserve interest rates.
The latest news from the Ukraine-Russia peace talks further boosted performance, with negotiators reportedly approach to some form of peace plan.
For traders, the short-term outlook was slowly but surely starting to look more promising.
#BTC is setting itself for a green-circled Weekly Close at this time
A Weekly Close above the red ~$38000 area, just like in the mid-2021 green circle, could be the confirmation $BTC needs to finally attempt a break beyond $43100 (black)#crypto #bitcoin pic.twitter.com/ixpOYtn8Mf
— Rekt Capital (@rektcapital) March 16, 2022
#BTC is setting up for a green circled weekly close right now
A weekly close above the ~$38,000 red area, just like the mid-2021 green circle, could be the confirmation $BTC needs to finally try to break above $43,100 (black)
“All eyes on the FOMC meeting, which will likely result in a false move first, before the real move, and then end in a panic move overall, as markets are determined by panic moves” , added Cointelegraph contributor Michaël van de Poppe.
The FOMC, or Federal Open Market Committee, was due to report at 2 p.m. ET on Wednesday, followed by a press conference by Fed Chairman Jerome Powell at 2:30 p.m.
US Stocks Follow China’s Lead After S&P 500 “Death Crossing”
In the meantime, Despite a “death cross” in the S&P 500 on Tuesday, US markets started Wednesday in the green.
The S&P gained 1.3% at the open, while the popular Nunya Bizniz Twitter account noted that both that index and Bitcoin have historically tended to bottom out right after such a crossover occurs.
A death cross refers to the 50-period moving average crossing below the 200-period moving average during downturns.
S&P500 Death Crosses & BTC:
Death Cross occurred yesterday. (50day ma below 200ma.)
Crosses have occurred in close vicinity of lows of both the S&P500 and Bitcoin.
This time? pic.twitter.com/FUBB3Pvonq
— Nunya Bizniz (@Pladizow) March 16, 2022
S&P500 and BTC Crosses of Death: The cross of death occurred yesterday. (50-day ma below 200-ma.) There have been crossovers near the lows of both the S&P500 and Bitcoin. This time?
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.