On March 24, Bitcoin (BTC) returned over $ 56,000 after a new Elon Candle triggered a famous spring in the bulls.

1 hour candlestick chart BTC / USD (Bitstamp). Source: Tradingview
Top time – $ 58,000
Data from Cointelegraph Markets Pro and Tradingview showed that bitcoin / US dollar pairs rose 3.3% in a few hours during Wednesday in the middle of the news that Tesla will accept and hold payments in bitcoins.

As with the first announcement of the company’s government subsidy last month, the news immediately increased to an immediate price increase, and the gloomy price movement intensified this week. As such, analysts were concerned about whether Tesla would launch a new phase of the bitcoin bull market, or whether the rally would be limited to lower time frames.

On the popular Twitter account Rekt Capital, the support was at $ 53,000 as before, with resistance likely to break through the $ 58,000 height.

“Bitcoin is currently moving towards the red zone, forming a bullish Morning Star candlestick pattern from the blue support zone,” follows the chart showing the reading of the two levels.

Will the previous support area be red to a new resistance area?

1-day BTC / USD candlestick chart (Coinbase) with highlighted support / resistance level. Source: Rekt Capital / Twitter
Rekt Capital previously claimed that, despite recent losses, it is “too early” to classify Bitcoin as a declining wedge pattern. At the time of the press release, the BTC / USD pair is concentrated in the area of ​​over $ 56,000 after the rally subsided when the resistance reached its zone.

“Tesla’s decision to accept payments for its cars in bitcoin and keep bitcoin in balance instead of converting it to dollars will likely give impetus to the cryptocurrency community,” added Simon Peters, a cryptocurrency analyst at the diversified company. eToro active investment platform. In the comments via e-mail.

Is it not accidental?
Meanwhile, others have pointed to the biggest expiration event on Friday, the biggest ever.

The expiration event is $ 6 billion dollars, surpassing the previous record in January, after which bitcoin is up 80% in a few weeks.

Zhu Su, CEO of Tesla and Technoking, Elon Musk and CEO of Three Arrows Capital, claimed that they had the perfect moment to announce their decision just days before.

“Elon is fully aware of the dynamics of the expiration of bitcoin options,” he tweeted.

Expiry of options tends to push the bitcoin price down, and a sudden rally is likely to liquidate a large number of bears. Musk is a notorious fan of this type of action, as he defended the actions of Reddit users during the GameStop disaster earlier this year.

Source: CoinTelegraph