We’ve been using this chart to trade Bitcoin since the $250 range. Notice it’s a logarithmic chart. We find that charting and analyzing Bitcoin’s value logarithmically gives a much clearer picture of its support and resistance levels.

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.