Bitcoin bounced off $ 40k for the second time in a week

Bitcoin (BTC) bounced off $ 40,000 for the second time on September 22 as China eased global concerns about Evergrande.

BTC / USD (Bitstamp) 1-hour candlestick chart. Source: TradingView

China continues to inject money into the market

According to data from Cointelegraph Markets Pro and TradingView, BTC / USD is hovering above $ 42,000 after the bulls defended the psychologically important $ 40,000 on Wednesday.

While the overall mood among investors is positive, China and the delta variant of the coronavirus remain worrisome.

China’s second-largest real estate company, Evergrande, recently announced that it would not be able to pay its debts that exceed $ 300 billion. China’s central bank, the People’s Bank of China (PBoC), injected another 120 billion yuan ($ 18.6 billion) into the banking system.

The PBoC move eased tense markets and created the perception that Evergrande’s potential bankruptcy would be a slow, state-controlled bankruptcy process rather than a chaotic event with far-reaching consequences.

Still, analysts believe that the Evergrande incident, which is regarded as the “Lehman Brothers” of China, will affect the market, at least in the short term.

“I think Evergrande, the FOMC meeting, the delta variant, and some other issues will continue to create volatility for the next few weeks or maybe months, and that volatility will be a buying opportunity,” said Vasu Menon, CEO of Investment Strategy at OCBC. Bank of Singapore told Bloomberg.

In Europe, Evergrande shares rose nearly 25 percent with the opening of the Frankfurt Stock Exchange.

All eyes on BTC’s weekly close

The Bitcoin situation, which began to correct itself with the stock markets earlier in the week, looks quite turbulent in the short term.

It may interest you: The price of Bitcoin rebounded from $ 40 thousand

Investor and analyst Rekt Capital believes that Bitcoin should close the week near its 21-week exponential moving average (EMA) of $ 43,000.

Crossing the 21-week EMA will ensure that the demand zone is also protected and that buy orders are processed before Bitcoin moves higher.

Pentoshi, another trader, has a slightly lower weekly minimum closing target. set $ 40,700.

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