Bitcoin gap fill double long wick candle bottom and trend line breakout strategy

The impact of core logic and gap filling.

• The significance of closing the gap: The gap between 112,000 and 114,000 USD has been fully filled, alleviating short-term downside risks—an hourly level has formed a "false breakdown of the range followed by recovery + long wick candle bottom" pattern; if the retest does not break the low, it will signal a short-term stop in decline, providing a foundation for a rebound.

• Signal of a trendline breakout: A descending trendline being broken indicates a short-term easing of weakness, increasing the risk of "blind shorting." A pullback may trigger stop losses, necessitating a shift toward a bullish oscillation mindset, but a breakthrough of key resistance is needed for confirmation.

Key Level Trading Strategy

• Long Conditions:

1. Volume breakout at $113,388 → Enter on the right side (hourly close must stabilize), target $114,030 → $115,222, stop loss on break.

2. 112008 USD false breakdown recovers → light position to try long, false breakdown low point or stop loss at 111600 USD, if there is no recovery action then give up;

3. Stabilize at 114030 USD → Increase long position, looking at 116025 USD, need to break through the box middle axis and upper edge;

4. For a conservative position, go long at 110,470 USD, with a stop loss below 109,536 USD (deep pullback buy, needs extreme market conditions).

• Shorting conditions:

1. If the volume drops below 113044 USD → short on the right side, target 112026 → 111600 USD, if the rebound cannot recover, stop loss;

2. Short with a light position at 116025 USD (2B false breakout), stop loss at 117050 USD (high position short, needs weak rebound confirmation);

3. 4-hour level breaks below 112013 dollars → increase short position, target 110495 dollars, if not recovered then the uptrend ends.

Effectiveness of the pattern and the double long wick candle bottoming

• Continuation of the double long wick candle probing the bottom:

◦ A rebound that coincides with increased trading volume and a breakthrough of the midline of the range (around $113,388) is key; otherwise, it remains in a range-bound fluctuation, and the double long wick candle support may fail.

• The importance of the 4-hour level defense:

◦ 112013 US dollars is the lifeline of the bullish trend. If it falls below and cannot recover, the trend will reverse, and long positions should be abandoned in favor of short positions.

Summary: Bitcoin's gap has been filled and it has temporarily stopped falling. The core of the operation: Long positions should follow up after breaking through $113,388, closely monitor the situation at $114,030. Short positions are limited to a false breakout at $116,025. If the 4-hour level of $112,013 breaks, it will completely reverse.