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Today's Bitcoin Setback & The Thousand Dollar Psych Out
Today's setback brought to you by MtGox brings us into a solid support range. Notice we're still well within stage 3 and found considerable support well above the trendline.
Before today, the price was pegged around the $1,000 which is a psychological resistance level. What does that mean? Take this example:
"Bitcoin is worth over $1,000!" vs "Bitcoin is worth $900".
See the difference? At $900 the next range that comes to mind is $1,000. Above $1,000 the next range is $2,000 (or $2,500?)
Assuming we break out to the upside of the triangle forming, I anticipate leaving this $1,000 level behind for good.
Before today, the price was pegged around the $1,000 which is a psychological resistance level. What does that mean? Take this example:
"Bitcoin is worth over $1,000!" vs "Bitcoin is worth $900".
See the difference? At $900 the next range that comes to mind is $1,000. Above $1,000 the next range is $2,000 (or $2,500?)
Assuming we break out to the upside of the triangle forming, I anticipate leaving this $1,000 level behind for good.
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