Market correction, the gap below is about to be filled, opportunity to enter long positions
BTC gap: around 118,400——119,000, a gap of 600 points
ETH gap: around 4096——4229, a gap of up to 133 points
So the question arises, will these gaps be filled quickly?
First, it is important to clarify that emotional gaps and technical gaps are not entirely the same; they do not necessarily have to be filled, but the probability of being filled in the short term is still relatively high, especially when emotional fluctuations are clearly cooling down.
Emotional gaps are usually divided into two categories: retracement gaps and breakout gaps.
Retracement gaps: The probability of being filled is close to 90%, as they often occur when the market makes impulsive buy/sell actions and then quickly calms down, with prices returning to the original trend range.
Breakout gaps: The probability of being filled in the short term is much lower; these gaps often appear during the acceleration phase of market trends, where emotional overheating or cooling leads to a 'price gap'. Once a trend inertia is formed, it takes longer to fill the gap, and it may even have to wait for the next market cycle to be filled.
How to distinguish between ordinary gaps and breakout gaps?
It's simple, just look at the subsequent trend like a 'post-mortem'. If the price continues to maintain continuous daily-level breakthroughs,
then it is clearly a signal of price breakout, and this gap is considered a breakout gap, making it difficult to fill in the short term, such as the gap near 92,000 on April 22, which is difficult to fill in the short term.
Conversely, if the current trend shows obvious signs of daily-level retracement in the subsequent movements, then the probability of filling the short-term gap is very high.
For example, the current Bitcoin price, after rising sharply, is accompanied by a clear retracement. If the current daily closes tomorrow with an upward spike, and the subsequent trend gradually weakens, combined with macro factors leading to a retracement, then the daily-level retracement will quickly fill this 600-point gap.
So, there is no need to worry about whether the gap will be filled in the short term; first confirm whether the subsequent trend maintains a strong breakout or shows obvious retracement.
Typically, the position where the gap is filled is an opportunity for long positions to be established on the left side, and further notifications will be given at that time
