A comprehensive study analyzed 2 years’ worth of Bitcoin buying and selling data. The findings were pretty surprising. The research took a look at the average weekly market cycle to find the best day of the week to buy, and also to sell.
What Were the Findings That Researchers Discovered?
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 methodology behind the study was 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.
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Obviously, the BTC market is very volatile and may not always conform to an overall average, so don’t take these findings as gospel. It isn’t investment advice, it’s simply market analysis.
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.
Why Does the Bitcoin Market Fluctuate Like This?
To be frank, nobody really knows, although the researchers in the study above speculated 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.
Mondays could be reflecting higher price points due to institutional investors taking positions at the beginning of the week. Many OTC desks do their best to make large buy orders and sell orders invisible to the retail trading market to prevent front-running.
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. This is purely speculation, of course. Either way, kudos to the researchers who conducted the study and revealed the interesting results.
What do you think of this bitcoin price study? Let us know in the comments below!
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FAQs
Since prices are likely to be at their lowest point following a weekend of low trading activity, Monday is the best time of the week to buy cryptocurrency.”
Does Bitcoin go up on Mondays? ›
Mondays are associated with higher returns and volatility in Bitcoin prices. Attention to Bitcoin varies significantly across weekdays. This effect has evolved along with the gradual recognition of Bitcoin worldwide.
Does Bitcoin go down on Fridays? ›
Generally, cryptocurrency prices start low on Monday and rise throughout the week. When the weekend hits, prices tend to drop until market activity begins the following Monday.
What day of the week is best to trade Bitcoin? ›
Saturdays have emerged as the frontrunner, boasting an average gain of 0.364% for Bitcoin, closely followed by Tuesdays with an admirable 0.360% increase. However, historically, Fridays stand out as the sole day of negative growth for Bitcoin. Further exploration of the data reveals nuanced details.
What time of day is Bitcoin highest? ›
What time of day is crypto most traded? Crypto traders have long debated the best time to trade cryptocurrencies. According to data from on-chain data provider Skew, 3 - 4 PM UTC is when cryptocurrency trading is most intense.
What is statistically the best day to buy Bitcoin? ›
Over the years, Saturday has emerged as the best day of the week to buy Bitcoin, with the coin gaining 0.364% on average on that day.
What is the trading day for Bitcoin? ›
Crypto trading hours are 24/7, 365 days per year — the market never closes.
When should Bitcoin go up? ›
Our most recent Bitcoin price forecast indicates that its value will increase by 11.2% and reach $79,330 by June 09, 2024. Our technical indicators signal about the Bullish Bullish 94% market sentiment on Bitcoin, while the Fear & Greed Index is displaying a score of 77 (Extreme Greed).
Does Bitcoin increase daily? ›
Since it was introduced, the value of Bitcoin has risen consistently, and its user base has grown over time. The actual value of Bitcoin changes constantly as cryptocurrencies are traded 24/7.
When to buy crypto and when to sell? ›
Cryptocurrencies like Bitcoin can experience daily (or even hourly) price volatility. As with any kind of investment, volatility may cause uncertainty, fear of missing out, or fear of participating at all. When prices are fluctuating, how do you know when to buy? In an ideal world, it's simple: buy low, sell high.
Yes, cryptocurrency markets are always open: they run 24 hours a day, 365 days a year. This is because, unlike stocks and commodities, the crypto market isn't a regulated exchange but is spread across a decentralised network of computers.
Does Bitcoin go up or down on weekends? ›
Key Takeaways. Bitcoin prices remain volatile throughout the week and weekend, but the volatility is somewhat reliable in that it is always present. There is less trading volume on the weekends, reducing liquidity. The significant drop in volume is likely from professional traders, who cease trading on weekends.
Should I buy bitcoin when it's low or high? ›
Investors who day trade — a risky investment strategy that involves frequent buying and selling — try to buy Bitcoin low and sell it if and when its value moves higher. But if you see a future for Bitcoin as a digital currency, perhaps your investment plan is to buy and hold for the long haul.
What is the day trading strategy of Bitcoin? ›
Crypto day trading is a short-term crypto trading strategy in the crypto market where traders open and close positions on the same day to take advantage of market volatility and profit by speculating on the price movements.
Is it a good time to buy Bitcoin now? ›
Bitcoin is more stable than it's been in years, and the next halving is fast approaching. Taking current market conditions into account, now might well be the perfect time to invest, so long as you remain cognizant of the risks.
Should I buy Bitcoin when it's low or high? ›
Investors who day trade — a risky investment strategy that involves frequent buying and selling — try to buy Bitcoin low and sell it if and when its value moves higher. But if you see a future for Bitcoin as a digital currency, perhaps your investment plan is to buy and hold for the long haul.
Do you buy crypto when it's red or green? ›
Usually, a green bar indicates a price increase, while a red one shows a price decrease. (Colours can be edited according to preference.)
