Looks like people start getting really nervous when $1000 hits. It starts rallying, then it corrects, and after it goes below $1000, the people that still hold no coins or shorted/sold above $1000, start buying it back and it hits $1000 back... looks like a solid resistance is being formed around $1000. This would be good. Once bitcoin demonstrates that it can recover from such a massive crash and keeps getting $1000 the new psychological floor will be stablished at that value. It would be good if we can spend a couple of days going up and down around the $1000 spot.
Well $1,000 is sort of a mental barrier for people. When they see that price over $1,000 they have a good positive mindset and therefore buy more and more. But once they've already seen that bitcoin can stay above $1,000 consistently they will think that $1,000 is the new floor.
Prices of goods and currencies are all about psychology. As $1,000 is a nice round number, that is chosen as a barrier. Just like the $100 barrier years before.
