Originally published in AxiTrader
How far can (Bitcoin) go? That is the question everyone is asking at the moment. Most speculators agree that this is a bubble that is bound to crash, but when it will happen is an entirely different one, which is impossible to answer. It might sound unrealistic at this point, but Bitcoin could very well extend to $20,000 or even $50,000 before there is a real crash. There is currently a crypto frenzy going on, and people are still keen to buy Bitcoin on every larger dip.
However, in the near-term, speculators should prepare for profit taking around the $10,000 level. This is a major psychological resistance level, and if Bitcoin breaks above it, it is more likely we will see plenty of buyers booking some profits instead of adding to their positions.
To the downside, expect decent support ahead of $9000, followed by $8350 - the high before the big weekend rally.