Why you should buy Bitcoin on Fridays
A new Longhash study has extensively analyzed data on buying and selling Bitcoin over two years. The results are pretty surprising.
The study looked at the average weekly market cycle to find the best day of the week to buy and sell.
Longhash has been researching Bitcoin’s hourly price data over a two-year period, finding some very interesting patterns in terms of price promotions and trading volume. The data for the study were provided by CryptoDataDownload.
The methodology was to find an average price for Open, Close, High and Low for every hour of every week. For example, they took the high price every Monday at 6 a.m. and formed the average price.
They did this every hour of every day of the week for two years.
In this way, the researchers found that the lowest average price for Bitcoin is on Fridays at 6 a.m. UTC. This means that on average this is the best time to take a long trade position.
As you know, the BTC market is very volatile and doesn’t always correspond to an overall average, so you shouldn’t take the study results at face value. It is not investment advice, just a market analysis.
The researchers also found that the Bitcoin price on Mondays and Tuesdays at midnight UTC is an average of $ 170 higher than on Fridays.
That means: Monday or Tuesday is statistically the best time to pay off a Friday long position or take a short position – and pay out the following Friday when the price is statistically lower.
The researchers speculate in the study that due to Monday / Tuesday / midnight UTC time, more active traders may be online at this time due to time zone overlaps. Asian, European and American traders – all are active at this time.
The researchers write that the trading volume is not particularly high during this time, so it does not correlate exactly. The study finds a correlation with lower Friday prices, but the lower trading volume gives credibility to its results for lower prices.
Mondays could reflect higher price points as institutional investors take positions at the beginning of the week. Many OTC desks do their best to make large buy and sell orders invisible to small investors to prevent front running.
This would also explain the lower prices on Friday night as traders cash out the positions they took on Monday / Tuesday for the week. Of course this is also pure speculation.
image by Shutterstock
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