Investors keep waiting for the Bitcoin rally that will push the token to a sustained value of $9,000. Since the collapse of the market in 2017 there have been indications that a rebound was imminent, but so far the world's most popular cryptocurrency has yet to gain traction.
In 2019 there were signs that a protracted Bitcon rally was on the horizon. The token even managed to approach $12,000 and beyond. That rally didn't last, and investors have been left to wonder what must happen for Bitcoin to move past $9,000 and stay there.
Technical Analysis Identifies Critical Resistance Levels
According to the current Fibonacci charts for Bitcoin, the $8,000 level has emerged as a strong resistance level. Throughout 2019 Bitcoin hovered slightly below $8,000 with the occasional break to the other side.
What investors are looking for to create a long Bitcoin rally is a move above $8,000. This would be a good entry point for those who want to renew their holdings of Bitcoin with an eye toward significant profits.
On the other side a drop to the $6,500 level could indicate that Bitcoin has not yet reached the bottom that investors expect. It could tumble farther in 2020 to $6,200 in the view of analysts.
What Needs to Change for Bitcoin to Hit $9,000?
A long Bitcoin rally all boils down to sentiment. Investors are going to have to find something to get excited about. Sentiment is a driving factor for all asset classes, and the sentiment around Bitcoin remains tepid.
Sentiment indicates the overall mood an investor has about a cryptocurrency. There are those who watch Bitcoin with caution because they think developments in the world of finance have an impact on Bitcoin's value. Those developments have not been totally positive for the crypto token as many governments struggle with how to address digital currency.