Bitcoin (BTC) rebounded after a second retest of $ 40,000 on September 22 as China calmed global market fears over Evergrande.
China maintains Evergrande cash injections
Data from TBEN Markets Pro and TradingView saw BTC / USD trade above $ 42,000 on Wednesday, with the bulls still defending the psychologically significant $ 40,000 bar.
The mood remained buoyant among traders, but the macro still provided mixed messages, with concerns focusing on China and the Coronavirus Delta variant.
Evergrande, China’s second-largest real estate giant, remained mired in defaulting on hundreds of billions of dollars in debt. 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 calmed anxious markets, with the potential collapse of the company seen more as a state-controlled “slow bang” than a chaotic event with far-reaching consequences.
Nonetheless, the specter of China’s “Lehman Brothers moment” was supposed to be a market driver at least in the near term, analysts said.
“Over the next few weeks and possibly the next couple of months, Evergrande coupled with the FOMC, the delta variant and a host of other issues will continue to create great volatility and to some extent that volatility will be an opportunity. purchase, ”Vasu Menon, executive director of investment strategy at OCBC Bank Wealth Management in Singapore, told Bloomberg.
In Europe, the Evergrande share jumped nearly 25% in Frankfurt at the opening.
Chances are Evergrande will become a non-event within days.
The reason for concern is not Evergrande, but traders who are concerned about Evergrande. Game theory.
– Alex Krüger (@krugermacro) September 21, 2021
All eyes on BTC’s weekly shutdown
For Bitcoin, which had sold out at the pace of global stocks earlier in the week, the outlook was therefore also volatile on shorter time frames.
Related: Bitcoin Bounces To $ 43,000 Ahead Of New Crypto Comments From SEC Chairman Gensler
Trader and analyst Rekt Capital envisioned the need for a weekly close above the 21-week exponential moving average (EMA) at just under $ 43,000.
“It would give us a lot of bullish momentum,” he said in his latest YouTube update.
The 21EMA rescue would also preserve a nearby demand area and also describe the trip to $ 40,000 as a “false blackout,” filling buy orders before Bitcoin heads to the top.
Trader Pentoshi meanwhile pointed to a slightly lower level, $ 40,700, as the deciding factor for the weekly close.
“This place has a ton of historical significance and is crucial for this week’s close,” he said. tweeted.