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Bitcoin Gap Chart

There’s two kinds of gaps in price for Bitcoin.

One is created by Bitcoin futures. The futures market is not 24 hours. So whenever there’s a price differential from one day to the next, it causes an empty space in the chart, known as a gap. The market has a tendency to push price back in that direction eventually, and turn that gap into a support/resistance zone, where formerly, there was no price action in that area.

Since the regular crypto market is open 24/7, we don’t see that type of gap in Bitcoin. The other kind of gap we do see here is caused by a large red or green candle where there’s a lot of space in an area that’s void of price action. As you can see on the chart… This whole year so far has basically been a series of pumps and dumps  (mostly dumps), with price finding a new low, then recovering up just enough to fill previous gaps before falling back downwards.

This leaves me interested in the gaps beneath that haven’t been filled yet . Especially the low 4k area which is where the 0.786 Fibonacci extension sits from the whole structure of the bull run in 2017.  I’m fully expecting a test of that area at some point before this bear market is concluded.

 

– nebraskangooner

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