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Once again, Bitcoin falls below $44,000; will it soon reach $50,000?

Bitcoin has experienced another surge, reclaiming the $44,000 mark with notable momentum in recent days. Technical analyst Cryptonary, in a recent tweet, highlighted the cryptocurrency’s significant move from $40,000 to nearly $44,000 since Monday.

Despite this positive momentum, Cryptonary warns that BTC is currently overbought on major timeframes, signaling the potential need for a pullback. The analyst advises caution and recommends waiting for corrections before considering further investments.

Bitcoin blasts off to $44k$BTC has had a great move, from $40k to $44k since Monday.

We can go higher. But we're overbought on all major timeframes. OI is up, and Funding is very positive.

Longs now look overweight. We'd wait on pullbacks to buy more.

Deeper insights⬇️… pic.twitter.com/jpFR62S8Jx

— Cryptonary (@cryptonary) December 6, 2023

Also read: Shiba Inu To 1 Cent? Google Bard Predicts When SHIB Could Hit $0.01

Can Bitcoin sustain the momentum to hit ,000?

In terms of technical and market analysis, BTC is facing local resistance around the low $44,000. BTC now has support at $42,300 and significant resistance at $45,600. Major timeframes indicate Bitcoin’s overbought status, urging caution in chasing the current upward trend. 

Cryptonary stated that open interest has surged by 10% in 24 hours, reaching $20.22 billion. However, the OI-weighted funding rate remains balanced at 0.01%. The analyst notes that Bitcoin maintains a healthier balance in terms of positioning compared to most altcoins, despite the positive funding in the altcoin market.

Also read: Robinhood Makes Waves in European Markets With Free Crypto Trading App

The analyst also points out potential exhaustion in the upward movement, emphasizing overbought conditions on larger timeframes. Cryptonary suggests that a substantial downward movement may be necessary to flush out excess leverage, making a cautious approach advisable for potential investors.

The upcoming Bitcoin halving event, a significant BTC event, is known to impact its supply dynamics and has historically influenced market sentiments. WatcherGuru has introduced a live Bitcoin halving countdown, where anyone can get the live countdown of the halving event. You can check out the real-time Bitcoin Halving Countdown here.

The analysis gives a hint that BTC hitting $50,000 is currently out of the picture. However, the market is quite unpredictable, and caution is always advised.


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