Bitcoin is rising again after briefly losing support at $ 40,000 – Check out these BTC prices
Bitcoin (BTC) rebounded from $ 40,000 after a second retest on September 22 as China allayed global market concerns about Evergrande.
China continues to pump money for Evergrande
Data from Cointelegraph Markets Pro and TradingView shows BTC / USD traded above $ 42,000 on Wednesday, with the bulls still defending the psychologically important $ 40,000 mark.
The mood among traders remains buoyant, but the macro still offers mixed messages, concerns are centered on China and the variant of the coronavirus delta.
Evergrande, China’s second largest real estate giant, is still regularly defaulting on hundreds of billions of dollars in debt. As a result, China’s central bank, the People’s Bank of China (PBoC), injected an additional 120 billion yuan ($ 18.6 billion) into the banking system.
This, in turn, has calmed nervous markets, with the potential collapse of the company being viewed as a state-controlled “slow explosion” rather than a chaotic event with far-reaching consequences.
However, analysts say the specter of China’s “Lehman Brothers Moment” is seen as a short-term market driver.
“For the next several weeks, and likely for the next several months, Evergrande along with the FOMC, delta variation and a host of other issues will continue to generate massive volatility and that volatility will be, to some extent, a buying opportunity.” Vasu Menon, Managing Director of Investment Strategy at OCBC Wealth Management in Singapore, told Bloomberg.
In Europe, Evergrande’s shares in Frankfurt am Open rose nearly 25%.
The chances are good that the Evergrande will become a zero event in a few days.
The cause for concern isn’t Evergrande, but traders are concerned about Evergrande. Game theory.
– Alex Krüger (@krugermacro) September 21, 2021
All eyes on BTC close weekly
For Bitcoin, which sold out at the same time as global stocks earlier this week, the outlook changes similarly for shorter periods of time.
Related: Bitcoin Soars To $ 43,000 Ahead Of New Crypto Comments From SEC Chairman Gensler
Trader and analyst Rekt Capital sees the need for a weekly closing price above the 21-week exponential moving average (EMA) at just under $ 43,000.
“That will give us a lot of upside momentum,” he said on his latest YouTube update.
The 21EMA bailout would also protect a nearby demand zone and portray the $ 40,000 journey as a “false crash” by executing buy orders before bitcoin rallies.
Meanwhile, fellow trader Pentoshi has highlighted slightly lower levels of $ 40,700 as key to closing the week.