Elon Musk is "astutely aware" of the impact of options expiry, Zhu Su claims as Tesla sparks an unlikely uptick after a week of losses.

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

Dollar

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

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?"

Chart

BTC/USD 1-day candle chart (Coinbase) with support/ resistance highlighted. Source: Rekt Capital/ Twitter

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.

No coincidence?

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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP