Bitcoin (BTC) starts the new week with temporarily stronger support as macro signals stabilize excitingly.

After a calmer weekend than last, BTC / USD managed to post its highest weekly closing time since February, dampening fears that the inevitable fall below $ 40,000 could begin.

Instead, conditions are beginning to favor a more bullish view of the shorter time frames. But as usual, nothing is known. Bulls must break the resistance and become supportive, starting at levels north of $ 42,000 – a “very close but so far” issue for the market this month.

However, the signs that faith is gaining ground again come from increased activity in the stablecoin markets. There are therefore few and far between really negative opinions about what lies ahead of us.

While global markets are miraculously recovering from weeks of war stress, the Cointelegraph is studying what could affect Bitcoin next week.

Stocks behave as if they no longer care about war
It may sound “wrong”, said market columnist Holger Szczebitz this weekend, but it seems that in just one month the markets have begun to forget the ongoing Russian-Ukrainian war.

He said that what had been a major cause of volatility in previous weeks had become an increasingly impotent driver for the market after the shock of sanctions came and went.

While the implications are far from clear, the current geopolitical reality is becoming increasingly opaque in the stock markets, which are currently evolving with a focus on political change in China.

Chinese stocks have taken a hit this year, led by technology stocks, under pressure from the government, but the apparent shift to more stability in Beijing is already having the desired effect.

Where Asia leads, Europe and the United States follow this week as markets rise. And in the case of the European Stoxx 600, the losses caused by the war were already eliminated.

“Global equities are up nearly $ 5 trillion this week due to the potential for a wave of stimulus in China and oversold stock prices,” Zrzepic said Monday.

Investors ignored the ongoing war in Ukraine and rising interest rates. The yield on the US 10-year bond jumped 10 basis points to 2.15%. All shares are now worth $ 112.4 trillion, which is 133% of global GDP.
If the good news continues, attention will return to Bitcoin’s correlation with stock markets, especially in the US, as a possible excuse for a price rise.

As indicated by the Decentrader trading package last week, the correlation pattern has not yet been broken.

“Since the beginning of the Russia-Ukraine conflict, price measures have been in line with the old markets, and there has been significant correlation throughout the period, showing that Bitcoin remains a risk-free asset in uncertain times,” an analyst at Filbfilb wrote in a report. market.

What does it take to break a spell? According to former BitMEX CEO Arthur Hayes, investors may have to wait longer than next week to find out, but they have to.

“As you can see, Bitcoin is currently associated with significant technological risk assets,” he wrote in a Medium post published last week.

“If we believe that nominal prices are going to rise and cause a bear market in stocks and an economic downturn, Bitcoin will follow big technology into the bath. The only way to break this correlation is to change the narrative around what makes Bitcoin valuable. It will destroy the sharp bullish gold market in the face of rising nominal interest rates and a recession. Globally inflationary this ratio. ”
Which cross wins?
Bitcoin managed to end the week with amazing immersive candles that pushed the weekly chart to a monthly high.

Still at around $ 41,000 despite last-minute attempts to send the market south, the largest cryptocurrency is in a stronger position as March continues.

However, things are not as simple as it seems, and neuroanalysts are still worried about a possible wave of weakness.

For example, despite the strong closing, last week’s weekly chart saw a so-called “death cross” form, as data from Cointelegraph Markets Pro and TradingView show.

It is formed when a moving average for shorter periods crosses a longer period – usually the 50 period below the 200 period, but in this case 20 periods below the 50 period – such events on the chart tend to indicate impending weakness.

BTC / USD 20 and 50 WMA weekly candlestick chart (bit stamp). Source: Trading View
In any case, the lower time frames are not without bullish signals.

Source: CoinTelegraph