Gap, translated from English, means "gap" or "break." This concept pertains to the field of technical analysis in stock market trading. It is worth noting that technical analysis can also be applied to the cryptocurrency market, as the tools and terminology are almost identical.

A gap — is a term that refers to a gap on a chart or a visual extension of a candlestick accompanied by a sharp change in the price of a market asset. A classic gap forms when trading closes at one price level, and the opening of the next day begins with a price significantly different from the previous day's level. In modern conditions, cryptocurrency trading operates 24/7, and a gap appears as a rapid rise or fall in prices over a short period within one timeframe.

4 Main Types of Gaps:

• Standard gap: occurs during sideways price movement of an asset, indicating low interest from market participants in the cryptocurrency asset;
• Breakout gap: the price changes significantly, breaking through an important support level, indicating increased trading volume;
• Acceleration gap: defines the midpoint of price movement amidst heightened interest from market participants; the asset's price is likely to continue moving in the current direction;
• Exhaustion gap: during high trading volume, the price will soon change direction from its current trajectory.

Factors Behind Gaps in Cryptocurrency Trading

Traders often observe the influence of fundamental factors on cryptocurrency prices. Key rates, news background, and global events can affect blockchain asset prices. The following types of factors can be identified:

• Current news: includes speeches by politicians, bankers, and unexpected statements by prominent figures;
• Force majeure: bans on mining in various countries, global electricity outages, and internet disruptions negatively impact the cryptocurrency world;
• Trend changes: when whales — major market players — abruptly change their strategies, influencing cryptocurrency rates.

For market participants, gaps — are an excellent opportunity to profit. Observing them allows traders to predict whether the price will fill the gap and return to its original position or continue its movement.