Bitcoin (BTC), which was above $41,000 before the Wall Street opened on March 16, saw positive news from Asia/Russia that buoyed stocks.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC closing week higher
Cointelegraph Markets Pro and TradingView data showed that BTC/USD maintained $41,000 as a focal point after the Chinese government promised economic support.
Beijing made the announcement after weeks of turmoil on Chinese markets. Tech stocks had been suffering especially hard.
Vice Premier Liu He stated that the government would now “actively release policies favorable to markets,” South China Morning Post and other media reported.
This resulted in a strong rebound on local markets with Hong Kong’s Hang Seng Index rising over 20%.
US-listed Chinese stocks jump as Beijing pledges policy support. Hang Seng Tech index rose 22% China’s top policymaker stated that the country will take measures to improve the economy and maintain stability in its capital markets. US-listed shares in Pinduoduo rose 31% and JD Alibaba both rose 20%. pic.twitter.com/oqshIalFJi
— Holger Zschaepitz (@Schuldensuehner) March 16, 2022
Bitcoin also responded, rising amid a tension geopolitical environment of war in Europe as well as an impending announcement regarding interest rates by the United States Federal Reserve.
Performance was further buoyed by the latest news about Ukraine-Russia peace negotiations, with negotiators apparently close to a form peace plan.
The short-term outlook for traders was gradually but surely looking 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
“All eyes are on FOMC meeting which will likely result in a fake-out movement first, before the real one, and then end up actually in panic moves overall as markets can be determined through panic movements,” Michael van de Poppe, a Cointelegraph contributor, said.
On Wednesday, the FOMC (or Federal Open Market Committee) was scheduled to report at 2 p.m. Eastern. A press conference by Fed Chair Jerome Powell followed at 2:30 p.m.
After the “death cross”, S&P 500, U.S. stocks followed China’s lead
Despite a “death crossing” on Tuesday’s S&P 500, U.S. markets opened Wednesday in the green
Related: Bitcoin risk final ‘bear-market capitulation’ as wealthy investors continue BTC saleoff — Analyst
The S&P gained 1.3% during the open. However, Nunya Bizniz, a popular Twitter account, noted that both Bitcoin and that index have historically tended to bottom right after such a crossing.
A death cross is the 50-period moving mean crossing below the 200-period average during downturns.
S&P500 Death Crosses and BTC: Death Cross occurred yesterday. (50day ma under 200ma. Crosses occurred within close proximity to lows of the S&P500 as well as Bitcoin. What time is it? pic.twitter.com/FUBB3Pvonq
— Nunya Bizniz (@Pladizow) March 16, 2022