- Tesla has started accepting Bitcoin as a payment method.
- CEO Elon Musk affirmed that the company would retain the coins and not sell them for fiat.
- BTC price rose over $1,600 following the announcement.
Bitcoin is back in the spotlight after Tesla's CEO Elon Musk announced that the company has started accepting BTC as a payment method. The flagship cryptocurrency quickly rose over $1,600 on Musk's remarks and seems primed to regain track to new all-time highs.
Tesla brings Bitcoin a step closer to mainstream adoption
Tesla has started accepting Bitcoin as a form of payment, according to its CEO Elon Musk. All of the firm's electric vehicles, including the world's best-selling all-electric car Model 3, can now be purchased with BTC.
The bold move by Tesla could influence Bitcoin's mainstream adoption, especially when considering that the company will allow BTC payment capabilities outside of the US later this year.
Musk also confirmed his intent not to convert into fiat currency the BTC tokens received for every Tesla vehicle sold. Instead, the firm will retain the coins by using an "internal and open source software [that] operates Bitcoin nodes directly."
You can now buy a Tesla with Bitcoin— Elon Musk (@elonmusk) March 24, 2021
BTC price on track to new all-time highs
Bitcoin price surged by more than 3% following Tesla's announcement, gaining more than $1,600 in market value. The pioneer cryptocurrency seems to have bounced from the 200 four-hour moving average after enduring a 12.44% correction in the past five days.
The recent rebound seemingly formed a double-bottom pattern on BTC's 4-hour chart. Another increase in buying pressure that allows Bitcoin price to move past the 100 and 50 four-hour moving averages will add credence to the optimistic outlook. But breaking through the $60,000 resistance level will solidify it.
Slicing through these resistance barriers could see Bitcoin price retest March 13's all-time high of nearly $62,000 and march to a new record high of $64,400.
BTC/USD 4-hour chart
It is worth noting that BTC price must hold above the 200 four-hour moving average for the bullish thesis to be validated. Failing to do so might generate panic among investors, causing Bitcoin to retrace to the next significant support level at $49,000.
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