Originally published by AxiTrader
(Bitcoin) had a rally to almost $12,000 over the weekend followed by a flash crash just earlier. Volatility in Bitcoin has always been high, but at the current levels speculators are far more edgy and those sudden crashes should be expected at any time.
Bitcoin has gone parabolic, and it is clear that this cannot go on forever. Therefore, many speculators are facing a dilemma. Time to take profit or to add to the long position?
As the saying goes: The trend is your friend until it ends. So far, the charts are suggesting that the strong uptrend remains intact. There is still strong demand on every larger correction in Bitcoin, and it would probably take a clear break below $9000 support to trigger a serious panic.
Another major factor supporting Bitcoin at the moment is fear of missing out. Too many speculators are concerned with missing out the next big BTC rally, which in case of cryptocurrencies can very well be enough to keep prices high.
To the topside, expect resistance at $11,500 followed by $11,891 and $12000. Support is seen at $11,000, $10,600 and 10,250.