Bitcoin traded slightly higher (+0.48%) on Tuesday, March 23, whereas all major currencies plummeted against the US dollar. Amid a rallying dollar, buyers were hard pressed to hold the $53,000 level during the American session.
On Wednesday, March 24, the greenback moved higher in Asian trading. From $55,830, sellers knocked the price action down to $53,511. To help Tesla retain profit from previously purchased bitcoins worth $1.5 bln, Elon Musk lent support to the bulls by pumping BTC up to $56,662.
Musk tweeted that cryptocurrency can now be used to buy Tesla vehicles, and this option will be available outside the US later this year. He went on to say that Bitcoin paid to the company will not be converted into fiat currency.
The leg up to $56,662 is not enough to sustain the rally. The $56,700 level is a strong resistance on the 1-hour chart. Buyers will need to move non-stop up to $58,500 to discourage sellers from ditching Bitcoin. While the dollar is correcting, buyers can take advantage of the time window for a recovery. If the $53,000 level is breached, then a grey line will shape up for buyers, which could turn black.