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.
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Can Bitcoin sustain the momentum to hit $50,000?
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.
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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.