When is the best time to buy Bitcoin and when do you think is the best time to sell? We have often received this important question from our readers. To make profits, you need to know the best time of the week to buy Bitcoin and that is what this article discusses.
February 16, 2020 | AtoZ Markets – Bitcoin has been getting a lot of attention recently and it’s safe to say that cryptocurrencies are slowly creeping into the mainstream. However, knowing the right time of the week to place a buy or sell bid is important in making profits as a crypto trader.
Extensive research analyzed 2 years’ worth of Bitcoin buying and selling data. You would be surprised at what the findings were. The study examined the average weekly market cycle to find the best day of the week to buy, and also to sell Bitcoin.
Related: How To Buy Bitcoin in India?
When should you buy and sell Bitcoin, Friday or Monday?
For a crypto investor to know the best day of the week to buy BTC, he needs to study the Bitcoin price movement using a site such as coinmarketcap. He also needs to analyze the historical data of the Bitcoin market. This strategy was employed by analysts from Longhash. What is the result of their findings?
Longhash’s study took a look at the Bitcoin hourly price data over a two year period and noticed some very interesting patterns regarding price action and trading volume. The data for their study was provided by CryptoDataDownload.
The study was conducted to find an average price for open, close, high, and low for every hour of every week. So, for example, they took the high price on every Monday at 6 am and found the average to come to a mean price. They did this for every hour of every day of the week for a two-year span. It must have been a lot of work!
The researchers found that the average lowest price for Bitcoin was at 6 am UTC time on Fridays. This means that this is on average, is the best time to take a position, in a long trade.
The researchers also found that on average, on Mondays & Tuesdays around midnight UTC, the Bitcoin price averaged 170 dollars higher than on Fridays.
This means that Monday or Tuesday statistically is the best time to cash out your Friday long or take a short position to cash out on the subsequent Friday when the price is statistically lower.
What is behind Bitcoin market fluctuation?
Honestly, nobody really knows, although the aforementioned researchers in the study reasoned that due to Monday/Tuesday midnight UTC time, it may be that because of timezone overlap, more active traders are online at this time. Asian, European and American traders are all active at this time.
The researchers did note, that the trading volume isn’t especially higher during this time, that it doesn’t exactly correlate. Researchers did note a correlation with the lower prices on Fridays, with lower trading volume. However, lending credence to their findings for lower prices.
That would also support the lower prices on Friday evenings as traders cash out for the week on the positions they took on Monday/Tuesday. Remember, this is mere speculation. Whatever the case may be, kudos to the researchers who conducted the study and unveiled the fascinating results.
From the foregoing on when is the best time of the week to buy and sell Bitcoin, we can clearly see that there is no such thing as a perfect market in the real world. Obviously, the Bitcoin market is very volatile and may not always conform to an overall average. Manipulation, human behavior, and the news can affect the price of Bitcoin, so don’t take these findings as gospel. It isn’t investment advice, it’s simply market analysis.
We urge you to always do deep research before buying Bitcoin and make sure to invest only what you can afford to lose. Finally, we hope that you can make decisions based on what is the best time of the week to buy and sell Bitcoin.
What do you think of this study on when to buy and sell Bitcoin? Let us know your thoughts in the comments section below!