Thread by @codermeno

#Bitcoin has tried to fill a #gap between $24k to $26k not yet completed.

#educational HOW GAP WORKS Thread (#1/7)

Gaps are areas on a chart where the price moves sharply up or down, with no trading in between. As a result, the chart shows a gap (jump) in price.

#btc #Crypto

#2/7

"Gaps occur because of underlying fundamental or technical factors. Ex., if a company's earnings are much higher than expected, the company's stock may gap up the next day. Meaning, price opened higher than it closed the day before, thereby leaving a gap" - Investopedia

#3/7
Gaps are most frequent in Futures, for #bitcoin, you can find it in #Tradingview (BTC1!) CME Futures.

When someone says a gap has been filled, that means price has moved back to the original pre-gap level. These fills are quite common and occur because of:

#4/7
Price overly optimistic or pessimistic, therefore inviting a correction, technical resistance and price action / pattern.

Gaps Classification:
- Exhaustion: occur near the end of a price pattern & signal a final attempt to hit new highs/lows

#5/7
- Breakaway gaps: occur at the end of a price pattern and signal the beginning of a new trend

- Continuation: also known as runaway gaps, occur in the middle of a price pattern & signal a rush of buyers or sellers who share a common belief in the underlying price direction

#6/7
Most likely to be filled gaps:

Exhaustion gaps are typically the most likely to be filled because they signal the end of a price trend, while continuation and breakaway gaps are significantly less likely to be filled since they are used to confirm the direction of the trend

#7/7
You now know the basics in what it comes to CME gaps.

Final thoughts, although $btc is trying to fill a runaway gap ($24k-$26k), there's also a breakaway gap at $19k that imo, would make more sense to be filled.

Like & share if you feel like 🙏

#bitcoin #crypto #cripto

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