Home Cryptocurrency Bitcoin tackles $56K as Tesla ‘Elon candle’ hits days before record options expiry

Bitcoin tackles $56K as Tesla ‘Elon candle’ hits days before record options expiry

by Gordon James

Bitcoin (BTC) rose on the 24th. March above $56,000 after Elon’s new candle put a familiar spring in the step of the bulls.

1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop

Break Time $58,000

Data from Cointelegraph Markets Pro and Tradingview shows that BTC/USD jumped 3.3% in a few hours on Wednesday following the announcement that Tesla will accept – and retain – payments in bitcoin.

As with the company’s initial announcement last month, the news was immediately reflected in higher spot prices, with prices picking up this week. Therefore, analysts wanted to know if Tesla would usher in a new phase of the bitcoin bull market or if the rally would be limited to the lower time frames.

For the popular Twitter account Rekt Capital, support was still at $53,000, with resistance possibly broken around the $58,000 area.

Bitcoin is currently rallying in the red zone and forming a bullish morning star candle from the blue support zone, the comments on the chart show two reading levels.

Will the previous red support zone become a new resistance? BTC/USD 1 day candle (Coinbase) with support/resistance marked. Source: Rekt Capital/Twitter

Bitcoin tackles $56K as Tesla ‘Elon candle’ hits days before record options expiry

Rekt Capital had previously argued that despite recent losses, it is too early to classify bitcoin as a falling corner. While BTC/USD targeted the area above $56,000 after growth slowed down when it reached the resistance area.

Tesla’s decision to accept payment for its cars in bitcoin and keep the bitcoins on its balance sheet instead of converting them to dollars is likely to create new momentum for crypto assets, added Simon Peters, a crypto asset analyst at multi-asset investment platform eToro, in an emailed comment.

No agreement?

Others said Friday’s expiration of options was the biggest ever.

At $6 billion, the expiration event differs greatly from the previous record set in January, after which bitcoin soared 80% in a matter of weeks.

Tesla CEO and CTO Elon Musk and Three Arrows Capital CEO Zhu Su said it was the perfect time to announce their deal days early.

Elon is well aware of the dynamics of the drop in bitcoin options, he tweeted.

Options put downward pressure on the price of bitcoin, and an unexpected price jump could lead to the liquidation of a large number of bears. Musk is a known fan of such moves and supported the actions of Reddit users during the GameStop debacle earlier this year.

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