Cryptocurrencies, unlike stocks and currencies, are quite difficult to trade and keep track simply because the market is always open. According to a detailed analysis by LongHash, using data from July 2017 to July 2019, Bitcoin shows the highest volatility between 12 AM and 1 AM UTC.
Time Zone Analysis
The initial perspectives extracted from the data show that in the last two years, most of the price movement occurs between 12 am and 1 am UTC. More daily and high minimums have arrived during this period of one hour than any other.
This one hour zone represents the beginning of the afternoon in North America and the beginning of the working day in Asia. Traders in Asia react to the news they wake up to, and American traders react to Asian sentiment.
Secondly, the graph indicates that there is no “right time” in the day to buy Bitcoin, since in the last two years, the differences in time zones that had a daily maximum or minimum were small enough that it would not be wise to consider them as significant inferences.
These graphs continue to strengthen the notion that market time exceeds market synchronization. However, buying during the very obvious parabolic bombs and falling victim to the famous FOMO also teaches us that time also matters.
Optimizing the Bitcoin trade
It is important to understand the nuances of the market before jumping into positions that were used and specially designated for the short and medium term.
Many newbies try to play market swings without a basic understanding of how market dynamics work. Bitcoin volatility is both a blessing and a bane. It allows experienced and non-emotional traders to take advantage of sudden changes, but also magnifies the losses of those who simply jump to expect immediate market gratification.
Taking the time to understand how everything works and what drives the market can make the world a difference. The time spent analyzing and not acting improves individual knowledge of functional aspects; It should not be considered a waste of time.
Market timing, as LongHash indicates, is not important for long-term investors. Despite this, most tend to buy only after massive bullish cycles and fall prey to fear during corrections. Always keep in mind that with large bull markets come bear markets of equal magnitude.