Just six days ago, Bitcoin traded at 9800 dollars, however, after three days, the cost of the home cryptocurrency surged above 10 $ 400. This is a very fast change by the standards of traditional assets. And thanks to it traders of cryptocurrencies can earn large sums even for one week.
However, all is not so simple. To buy cheap and sell expensive is not always possible, since no one can be completely sure in what direction will the stock market in the next few days. Experts Long Hash tried to determine the best time for buying and selling BTC for the day of the week.
How to trade cryptocurrency
To find regularities in the formation of the value of Bitcoin, the analysts studied two years of the price movement of BTC up to one hour. The information obtained was split by hours and by days of the week to make it easier to determine the ideal entry point and exit from the market.
The principle of learning was formed thus: to determine the average price of BTC at 1:00 on Monday, experts found the average cost value for all Mondays to do that same one hour of the night. Recall that the data analysed in the period from 6 February 2018, 6 February 2020.
For two years, every hour and every day of the week is repeated exactly 104 times. The experts did not consider the entire history of Bitcoin, as for the analysis was taken “modern stage” for the development of cryptocurrency. In addition, when studying the history of coins data would be distorted by the sharp UPS and downs of BTC.
On the chart below shows average prices of opening, closing, highest and lowest point for each hour of each day. An interactive version of the chart with a larger scale posted at this link.
So, for the past two years, the price of Bitcoin is often dropped to the lowest point in a week Friday about 6 a.m. UTC. Thursday and Friday were the best days to buy cryptocurrency — in this period its value has reached a local bottom. The best time to sell Bitcoin — Monday night or Tuesday morning.
See also: what day of the week is best to buy altcoins?
The average open price of Monday/Tuesday on the daily chart of the cryptocurrency were $ 170 higher than the opening price on Thursday/Friday.
Note that a published report Long Hash is a simple comparison of the average values of Bitcoin prices. It can display historical trends of cryptocurrency in the past two years, but only on its basis it is impossible to make forecasts. The past does not guarantee future. For trading use technical analysis charts and indicators. Although these methods work not always.
Long Hash did not come to the same conclusion about the nature of the formation of these price trends. Monday evening UTC coincides with morning in China, so at first experts have suggested that the growth of the BTC can be linked to high activity of traders in Asia. After analysis of the hourly price movement, this theory was not confirmed.
Another schedule can be viewed read more at this link.
Friday’s decline in the value of Bitcoin is associated with “fatigue” European and American traders by the end of the week.
Of course, in the end it comes down to buying cryptocurrency is not on certain days, and seminars. Traders should buy low and sell high. However, since the vast majority of fans of the cryptocurrency cannot correctly determine the point to enter, fans risk investments will continue to lose money. So even this study will make little difference.
Have you noticed any interesting dependencies in the stock market? Share your observations in our cryptodata millionaires.
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