Bitcoin (BTC) bounced back more than $41,000 ahead of the Wall Street open on March 16 as good news from Asia and Russia boosted stocks.
BTC/USD 1-hour light chart (bit-mark). Source: Trading View
BTC is on track to end the week up
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding $41,000 as a focus after the Chinese government promised new financial support.
Beijing announced the move after weeks of turbulent action in Chinese markets, hit particularly hard in tech stocks.
Vice Premier Liu He said the government will now “virtually publish market-friendly guidelines,” press channels including the South China Morning Post reported.
The result was a strong recovery in local markets, with Hong Kong’s Hang Seng index up more than 20% on the day.
Bitcoin has also reacted, erupting in the midst of a tense geopolitical war in Europe and the imminent announcement of interest rates by the US Federal Reserve.
Latest news about peace talks between Ukraine and Russia has boosted efficiency as negotiators are reportedly close to some form of peace plan.
For traders, the short term is slowly but surely starting to look promising.
Michael Van De, a contributor to Cointelegraph, added: “All eyes are on the FOMC meeting, which will likely lead to a false move first, then a real move, and then actually end in a general panic as markets are driven by panic moves,” Bob..
The Federal Open Market Committee, or FOMC, was due to report at 2:00 pm. ET on Wednesday, followed by a 2:30 p.m. press conference by Federal Reserve Chairman Jerome Powell. ET.
US stocks follow China after S&P 500 ‘death cross’
Despite the death cross on the S&P 500 on Tuesday, US markets started higher on Wednesday.
Related: Bitcoin Finally Risks ‘Bear Market Capitulation’ As Wealthy Investors Continue Bitcoin Selling – Analyst
The S&P gained 1.3% at the open, while popular Twitter account Nonia Bizney noted that historically both the index and bitcoin had a downward trend shortly after the crossover occurred.
A dead cross indicates a 50-period moving average that crosses the 200-period moving average during a downtrend.