How to read Bitcoin gap

What do you think of the Bitcoin gap? This is an issue that many netizens are concerned about. Next, the PHP editor will bring you the Bitcoin Gap Viewing Guide. Interested netizens should follow the editor to take a look!

Bitcoin Gap Viewing Guide

1. Bitcoin gap refers to the price area on the chart, which indicates a sharp increase or decrease in price, resulting in an obvious blank on the price chart.

2. Gaps usually occur during high-volume trading periods, showing strong market interest or selling pressure in the asset.

3. How to identify Bitcoin gaps Check the price chart: Look for obvious white areas on the chart that are significantly different from the previous price level.

4. Confirmed Volume: Gap periods are usually accompanied by high trading volume, which indicates a lot of trading activity in the market.

5. Distinguishing types: Gap can be divided into rising gap and falling gap. Rising gaps occur when prices rise significantly, while falling gaps occur when prices fall significantly.

6. The significance of Bitcoin gap and market sentiment: The gap can reflect market sentiment. A rising gap indicates market optimism, while a falling gap indicates market pessimism.

7. Technical Analysis: Technical analysts view gaps as potential support or resistance levels. Gaps often attract reverse trades because traders believe price will fill the gap.

8. Trading opportunities: Gap can provide traders with potential trading opportunities. For example, traders can go long when price fills a downward gap, or short when price fills an upward gap.

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