Bitcoin Recovers Above $56,000 as Tesla Adds BTC Payment Option

Bitcoin (BTC) rose above $56,000 with the sight of a new “Elon candle” on March 24.

According to data from Tradingview, the BTC/USD pair gained 4% on Wednesday after Tesla announced that it would accept Bitcoin payments.

Earlier, after the company announced last month that it had invested in Bitcoin, the price of the premier cryptocurrency rallied. Using that as a yardstick, analysts are now wondering whether Tesla will start a new phase in the Bitcoin bull market, or whether the rally will be limited to a short time.

Popular Twitter account Rekt Capital said support level lay at $53,000 while resistance is at $58,000.

“Bitcoin is currently rallying towards the red area, forming a bullish Morning Star candlestick formation from the blue support area,” Rekt Capital posted in a post showing two critical levels.

1-day candlestick chart (Coinbase) showing support and resistance of the BTC/USD pair. Source: Rekt Capital / Twitter

Rekt Capital previously argued that despite the recent BTC price drop, it was too early to classify Bitcoin as forming a falling wedge pattern.

Meanwhile, Simon Peters, crypto-asset analyst at investment platform eToro said “Tesla’s decision to both accept Bitcoin payments and keep the revenue from these payments in Bitcoin will give cryptocurrency a new momentum.”

At the time of writing, Bitcoin is trading above $55,000 and it’s market capitalization has risen to $ 1.03 trillion.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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Published under: Bitcoin

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