When the price is going up there is always talk of the "psychological barriers" that appear at round numbers.
Interestingly when the price is going down there is no talk of these barriers.
Why is this?
A few possible reasons:
- The cherry has been popped and now it's lubed up and ready to go again
- There is no psychological barrier, and it's just a piece of bullshit that the bulls come up with
- The price drops so much faster than it goes up so the barrier is irrelevant
Because previous or lower support or resistance is never rounded off: many people's mental prices average out to an odd number.
And because people's cashing-out number always IS a round number.
