Bitcoin (BTC) price has soared above $55k after Tesla CEO Elon Musk announced that the company would accept BTC as payment for its electric cars

Bitcoin price is looking to bounce higher above $55k after a sharp sell-off on 22 March had sent it towards lows of $52,000.

The benchmark cryptocurrency has gained about 4.5% in the past 24 hours, turning green over the weekly timeframe.

Bitcoin’s recovery comes after Tesla CEO Elon Musk announced that the electric car maker had officially begun to accept BTC payments.

Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency“, the Tesla chief tweeted.

The market reaction has been swift, with bulls taking the cue to send BTC above $55,000.

If bulls continue the uptrend, Bitcoin price could break above a key resistance level and retest barriers at the $60k—$62k zone.

Bitcoin price outlook

Yesterday, BTC price touched $52,933 before bulls stepped in to stop the rot. The rebound was, however, indecisive as shown by the Doji candlestick on the daily chart.

Technical indicators suggest bulls may have an opportunity to exert some upside pressure.

BTC/USD daily chart. Source: TradingView

Although the MACD remains within the negative territory, there’s a hint of bearish weakness. The RSI is looking to turn higher above 50 to strengthen the positive view.

If buyers maintain the upside above $55.8k, the 0.236 Fibonacci retracement level ($57,394) provides the next resistance line.

A clear breakout above a bearish trendline on the daily chart would allow bulls to target the $58,000 line.

On the contrary, a fresh rejection near $57k and the bearish trend line could see BTC price retreat. The first support zone is near $54k, with the 0.5 Fib level ($52,430) providing a further cushion.

If sellers take short-term command, Bitcoin could drop to the primary support at the 50 SMA ($50,784) and the 0.618 Fib level ($50,211).

At the time of writing, the BTC price was ticking around $56,143.

This post was originally published on Coinjournal.