Bitcoin (BTC) recovered above $56,000 on March 24 after a new "Elon candle" put a familiar spring in the step of bulls.
Crunch time at $58,000
Data from Cointelegraph Markets Pro and Tradingview showed BTC/USD gaining 3.3% over several hours during Wednesday on news that Tesla will accept — and keep — payments in Bitcoin.
As with the company's initial announcement of a treasury allocation last month, the news immediately translated into spot price gains, as the gloom of this week's price action lifted. Analysts were thus interested in whether Tesla would spark a new phase in Bitcoin's bull market or whether the rally would be confined to lower timeframes.
For popular Twitter account Rekt Capital, support lay at $53,000 as before, with resistance potentially kicking in around a zone with $58,000 as its top.
"Bitcoin is currently rallying towards the red area, forming a bullish Morning Star candlestick formation from the blue support area," comments accompanying a chart showing the two levels read.
"Will this red previous support area turn into one of new resistance?"
Previously, Rekt Capital argued that despite recent losses, it was "too early" to class Bitcoin as forming a falling wedge pattern. At press time, BTC/USD focused on an area above $56,000 after gains slowed as the resistance area hit.
“Tesla's decision to both accept payment for its cars in bitcoin and hold that bitcoin on its balance sheet rather than convert it to dollars will likely build more momentum for the cryptoasset," Simon Peters, cryptoasset analyst at multi-asset investment platform eToro, added in emailed comments.
Others meanwhile pointed to this Friday's upcoming options expiry event, the largest ever.
At $6 billion, the expiry event dwarfs the previous record from January, after which Bitcoin increased by 80% in weeks.
Tesla CEO and "Technoking" Elon Musk, Three Arrows Capital CEO Zhu Su argued, had perfect timing in announcing acceptance just days beforehand.
"Elon astutely aware of Bitcoin options expiry dynamics," he tweeted.
Options expiries tend to exert downward pressure on the Bitcoin price, and a surprise uptick would potentially liquidate a large number of bears. Musk is a well-known fan of such moves, championing the actions of Reddit users during the GameStop debacle earlier this year.