BlockchainBaller

Most retail traders focus on support and resistance. Professional traders look deeper at inefficiencies in price delivery. One of the most powerful tools they use is the Fair Value Gap, often called FVG.

A Fair Value Gap forms when price moves aggressively in one direction, leaving an imbalance between buyers and sellers. This usually appears as a strong impulsive candle where little to no trading happens in between. That “gap” represents unfinished business in the market.

Markets naturally seek efficiency. After a sharp move, price often returns to fill that imbalance before continuing in the original direction. This is why you frequently see price retrace into a gap, pause briefly, and then resume the trend.

The mistake many traders make is chasing the breakout candle. Professionals wait patiently for price to return into the Fair Value Gap zone. That area becomes a high-probability entry because it aligns with liquidity and structure.

Not every gap works, and context always matters. The strongest setups happen when a Fair Value Gap aligns with higher-timeframe support or resistance and is supported by volume and trend direction.

The real edge is patience. Instead of reacting to emotion, pro traders wait for price to come back to value. Fair Value Gaps are not magic they are simply a way to understand where the market left imbalance and where opportunity may return.

Before every explosive breakout, there is usually a quiet phase that most people ignore. Price moves sideways, volatility drops, and social media becomes silent. This is often where smart money begins to accumulate.

Smart money does not chase green candles. They prefer consolidation zones where price stays within a tight range. During this phase, they slowly build positions without pushing the market too high. If they buy aggressively, price would spike and expose their strategy.

You will often notice repeated support holds at the same level. Dips get bought quickly, but price doesn’t break out yet. Volume may look average, but the structure remains strong. This is absorption large players collecting supply from impatient sellers.

Liquidity sweeps are common before a real breakout. Price may briefly drop below support to trigger stop losses, then immediately recover. That shakeout removes weak hands and transfers coins to stronger holders.

When accumulation is complete, the breakout usually comes with strong volume and clean structure. Resistance breaks decisively and the market does not look back. By then, smart money is already positioned.

The key is patience. Instead of chasing breakouts, learn to identify the calm before the storm. The quiet range that feels boring is often where the real opportunity is being built.

A 70% drawdown doesn’t just hurt your portfolio it attacks your emotions. Fear, regret, anger, and doubt all show up at the same time. This is where most traders quit, not because the market ends, but because their confidence does.

In bull markets, everyone feels like a genius. Profits come fast and risk feels invisible. But when price drops 50% to 70%, reality hits. The same asset that made you feel powerful now makes you question every decision. That emotional swing is what breaks weak hands.

The biggest psychological mistake during deep drawdowns is panic selling at the bottom. When losses feel unbearable, people sell not because of logic, but because they want the pain to stop. Unfortunately, that is often where long-term reversals begin.

Another hidden factor is ego. Many traders refuse to accept they were early or wrong. Instead of managing risk, they hold blindly without a plan. Discipline disappears and hope replaces strategy.

Experienced investors think differently. They expect volatility. They size positions properly. They separate emotion from structure. A 70% drop is not the end of crypto it is part of its cycle.

The real battle during drawdowns is not against the market. It is against your own mind. Those who control fear and stick to structured decisions are the ones still standing when the next bull run begins.