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According to trader Glen Goodman, Bitcoin is facing a crucial resistance level at $50,000, which it has approached but not yet convincingly breached.
This level has been spotlighted as a pivotal point for Bitcoin's short-term market sentiment.
The flagship cryptocurrency is currently trading at $45,039.59, up by 4.9% over the last 24 hours.
The pivotal level
The chart shared by Goodman reveals a pattern of fluctuation where Bitcoin has been wrestling with the $50,000 resistance line.
Over the past year, Bitcoin has seen a dramatic fall from its all-time high, followed by a period of consolidation and a recent upward trend.
The volume of trades, represented at the bottom of the chart, shows less activity during the consolidation period, which indicates a cautious approach from investors.
The blue dotted line demarcates the $50,000 level, a threshold that has been tested several times.
The major test
A break above the aforementioned level could be significant, indicating potential for further gains. However, the repeated tests of this level without a clear breakthrough highlight the market's uncertainty.
Analyst Gert van Lagen points out that Bitcoin's price moves before breaking previous all-time highs often involve a close within the 61.8-78.6% Fibonacci retracement levels.
This is followed by a test of the 61.8% level and potentially a parabolic rise beyond the previous all-time high.