Bitcoin rises with Asian stocks, while $41,000 resistance gets decisive after a brief but failed breakout overnight.
Bitcoin (BTC) returned above $41,000 prior to the Wall Street open on March 16 as good news from Asia and Russia buoyed stocks.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC on track to close week higher
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD maintaining $41,000 as a focus after the Chinese government promised fresh economic support.
Beijing announced the move following weeks of tumultuous action on Chinese markets, with tech stocks suffering particularly badly.
Now, Vice Premier Liu He said, the government would “actively release policies favourable to markets,” press outlets including the South China Morning Post reported.
The result was a strong bounce on local markets, Hong Kong’s Hang Seng Index gaining over 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 also reacted, breaking upward amid a tense geopolitical atmosphere of war in Europe and an impending announcement on interest rates from the United States Federal Reserve.
The latest news from Ukraine–Russia peace talks further buoyed performance, with negotiators reportedly nearing a 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
“All eyes on FOMC meeting, which will probably result into a fake-out move first, before the real move, and then actually end up in a panic move overall as markets are determined through panic moves,” Cointelegraph contributor Michaël van de Poppe added.
The FOMC, or Federal Open Market Committee, was due to report at 2 pm Eastern time on Wednesday, followed by a press conference from Fed Chair Jerome Powell at 2:30 pm.
U.S. stocks follow China lead after S&P 500 “death cross”
Despite a “death cross” on the S&P 500 Tuesday, meanwhile, U.S. markets began Wednesday in the green.
Related: Bitcoin risks final ‘bear market capitulation’ as rich investors continue BTC selloff — Analyst
The S&P gained 1.3% on the open, while popular Twitter account Nunya Bizniz noted that historically, both that index and Bitcoin have tended to bottom just after such a cross takes place.
A death cross refers to the 50-period moving average crossing under 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
