The markets have been garnering lots of attention recently. Crypto is slowly getting back into the mainstream. Everyone wants to buy and sell but many just don’t know the right time to do so.
An extensive study, going over 2 years has analyzed the buying and selling of Bitcoin. The results of this study surprisingly reveal the best days of the week to buy and sell bitcoin.
Friday Or Monday?
For the average investor, to find out the best day of the week to buy BTC, they need to carefully study BTC price movements on Coinmarketcap. Historical data on the bitcoin market is also essential for the trader.
A study by Longhash looked at bitcoin’s hourly price data for over two years and noticed some interesting patterns in regards to price action and trade volume.
The objective of the study was to investigate the average price for an open, close, low and high for every hour weekly. For instance, they considered the high price every Monday at 6 am and calculated the average to arrive at a mean price. They did this every hour, every day of the week in a 2 year period.
Their studies found that the average lowest price for BTC was at 6 am UTC on Friday. Which means this is the best time to take a position in a long trade.
The research also found out that on Monday and Tuesday midnight UTC, bitcoin prices were 170 dollars higher than the previous Friday.
Therefore, statistically, Monday and Tuesday are the best time to cash out a position taken on the subsequent Friday.
BTC Market Fluctuations
Concerning what’s behind the BTC recent fluctuations, nobody really knows. Although, the researchers have reasoned that the Monday/Tuesday midnight UTC time is a time zone overlap that results in more traders from Asia, Europe and America being online at the same time.
Mondays reflect a higher price due to institutional investors taking their positions at the beginning of the week. Lots of OTC desks do their best to make large buy orders and sell the invisible orders to the retail trading markets in order to prevent front running.
The same reasoning also supports the low prices on Friday evenings as traders cash out the positions they took on Monday/Tuesday.
Investors should, however, take precautions when trading on crypto. Obviously, there is nothing such as a perfect market and the BTC market is in addition, super volatile and does not always conform to the overall average. Manipulation, human behaviors, and the news always affect BTC prices.
Such findings shouldn’t be taken more than speculative. However, kudos to the researchers with the tiresome work and fascinating results.