After a brief but unsuccessful breakout overnight, Bitcoin climbs in tandem with Asian indexes, as the $41,000 barrier becomes firm.
As encouraging news from Asia and Russia boosted markets, Bitcoin (BTC) rose above $41,000 before the Wall Street open on March 16.
BTC is on course to end the week on a positive note.
Following the Chinese government’s offer of further economic support, data from several crypto analysts showed that BTC/USD remained a focus at $41,000.
Following weeks of turbulence on Chinese markets, Beijing announced the move, with IT stocks taking the brunt of the losses.
According to the South China Morning Post, Vice Premier Liu He stated that the government would “actively release policies advantageous to markets.”
The consequence was a sharp rally in local markets, with Hong Kong’s Hang Seng Index surging 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
Bitcoin reacted as well, breaking higher amid a tense Geo-political backdrop of war in Europe and the US Federal Reserve’s approaching interest rate announcement.
The recent news from the Ukraine–Russia peace talks boosted performance even further, with negotiators allegedly close to reaching an agreement.
For traders, the short-term prognosis was gradually but steadily becoming 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
The FOMC, or Federal Open Market Committee, was scheduled to release its report at 2:00 p.m. Eastern time on Wednesday, with Fed Chair Jerome Powell holding a press conference at 2:30 p.m.
After the S&P 500’s “death cross,” U.S. equities are following China’s lead.
Despite the S&P 500’s “death cross,” Meanwhile, U.S. markets started Wednesday in the black on Tuesday.
On the open, the S&P 500 rose 1.3 percent, while Nunya Bizniz, a prominent Twitter account, remarked that historically, both that index and Bitcoin have tended to bottom shortly after such a cross.
During downturns, a death cross occurs when the 50-period moving average crosses below the 200-period moving average.
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
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
