Playing this cryptocurrency game is all about the long-term growth, but there are plenty of instances where short-term profit reigns over all else.
We all remember the bitcoin boom of 2017, and many people didn’t cash in when the going was good.
You want to know the best time of day to buy bitcoin to maximize those profits, and walk away with more than you started with. After all, who doesn’t want to make money on an app in the span of 24 hours?
This breaks down the main time frame of when you should be buying bitcoin, as well as the average price movements that we see throughout the day. Let’s start trading smarter, shall we?
- 1 Price Movements Throughout the Average Day
- 2 As it Turns Out, the Best Time to Buy is Between 3PM and 11PM
- 3 Be Prepared for High Market Days
- 4 How to Protect Against Price Changes: Exchange Notifications Could Save the Day
- 5 Bitcoin Can Rise and Fall Overnight
- 6 Can I Trade Bitcoin Whenever I Want to?
- 7 Buying Smarter, Selling Higher
Price Movements Throughout the Average Day
At the time of writing this article, I watched bitcoin fluctuate in about a $180 USD range over the course of two days.
It’s important to keep a watch on these, because many day traders will simply hold onto bitcoin until it garners them a $100 profit, then sell, wait until it lowers, and do it all over again while pocketing the profit.
There’s nothing wrong with this, but it can quickly go awry if you aren’t paying attention to the price movements.
We’re dealing with something that is decentralized, and unpredictable. With the stock market, you have investor meetings, quarterly analysis reports, competitor numbers, and plenty of other factors that can help predict the market (so to speak; nobody can truly predict what’s going to happen).
With crypto, it doesn’t matter how well ethereum is doing; that doesn’t really impact the cost of bitcoin. There’s no investor meetings. It makes things unpredictable.
We can use data to teach us about the average price movements, times of day, and other information surrounding bitcoin to help us out.
As it Turns Out, the Best Time to Buy is Between 3PM and 11PM
Bitcoin is every man’s currency. There are plenty of graphs, charts and services that track bitcoin price movements throughout the day, but there aren’t always clear-cut reasons as to why prices fall when they do.
However, between 3:00 PM EST and 11:00 PM EST, you have the least amount of volatility. The most radical price changes generally occur throughout the other sixteen hours of the day.
Part of the reason for this is that the European market in bitcoin is alive and well, and sometimes more active than the United States bitcoin market. Bitcoin has been out for a hot minute, so we can use data over the last five-or-so years to track trends and expected changes to gauge the market.
This is the key info that you need to know when it comes to buying bitcoin at optimal times.
Days of the Week
Bitcoin is traded every minute of every day, but it has higher demand during certain periods of the week. Typically, you’re going to see the highest bitcoin prices on Fridays and Saturdays, and it will even out on Sunday where the fluctuation slows down, usually in favor of a higher resting price.
Monday is when we see the lowest bitcoin prices out there, because they’re being sold after hitting a high on the weekends. Investors that spent something like $1,000 on Thursday now want to cash in on the $1,075 that they can make, and turn a small-time profit.
That’s when it’s your best time to buy. Historically, we can see bitcoin prices steadily rise from Monday to Thursday, hitting that all-time weekly high on Fridays and Saturdays.
The cycle repeats itself. If you’re looking for short-term trading, or even day trading, you’re going to want to set your sights on Mondays.
Holidays can impact the price of bitcoin, and alter the volume at which it’s traded as well. Typically, we see small downturns in December. You might be thinking back to 2017, when bitcoin dropped from it’s all-time high price of over $20,000 per BTC to about $13,500.
As I mention on CoinTippy all the time, the market is unpredictable, which is partially what makes it so alluring. We can’t 100% know when things will dip, but there are some speculations that we can all come to agreement on.
Christmas is a stressful holiday for many people in the United States, where a large portion of the cryptocurrency marketplace is.
Short-term traders who just got into the game often feel pressured, and succumb to that pressure, to sell off their bitcoin to make the holiday happen for their little ones. Not to mention the January credit card bills that are sure to follow.
Holidays that allow a majority of the country to take off of work also affect the price. People have more time to do research, decide what crypto they’re going to invest in, and then take the plunge to invest.
A high purchase volume can spike the price up, even if it’s only temporary. This could work out in your favor if you buy towards the beginning of December, but it’s unclear just how much these price spikes could happen in the future with the global market becoming more diverse.
Time of the Month
At the end of the month, people have just a little bit more money. Rent hasn’t come on the first, they haven’t gotten their energy bills for another week. People are more willing to take a risk, and invest in something they’re passionate about – bitcoin. They take the time to invest in it, and then the price goes up.
That’s good for us, if we invest in a timely fashion. But for them, they see a $20.00 to $500.00 small-time price jump, and think “I’m about to make money, then I’ll do this again.”
They sell, the price of bitcoin starts to go down (because everyone else is selling as well), and then they opt to buy it again. The world keeps on spinning.
The best time to buy bitcoin is in the middle of the month when people are in the throes of earning their money, and haven’t had time to spend it yet. This is when prices have been historically lowered, if only for a short while.
Be Prepared for High Market Days
When other investors figure out what the best buying times are, they’re going to join the pack of buy low, sell high.
There’s nothing wrong with that, but eventually, when the market shows a high yield return if these investors sell, many of them will. Many investors don’t know how to play the long game.
These are the days that more intelligent investors like you and I have to worry about. A high sell-off can affect the price of bitcoin, so we have to be prepared to either hold onto our bitcoin and ride it out, or sell while the going gets good before major market changes tarnish that.
How to Protect Against Price Changes: Exchange Notifications Could Save the Day
The bitcoin market is open 24/7/365. That’s exhausting when you think about the fact that you could sleep through the next global, decentralized currency meltdown like we saw when bitcoin fell from its highest point ever.
Brokerages like Coinbase have tools available to help you safeguard yourself against this.
While they can only do so much, the reason they’re chosen along with Binance and Kraken, is because they offer notifications that let you know when your preferred cryptocurrency has fallen below a certain percentage.
Cryptocurrency marketplaces also offer the ability to view past trends of different crypto, just like bitcoin, so you can see what currencies perform, which ones go under constant changes, and which ones are low-hanging fruit that you can invest in with little volatility.
You can do whatever you want with that information. Ride it out, decide to sell before you lose anything, or mark your notification requests so that you can take advantage of a price fall in the market. It’s your ballgame.
Bitcoin Can Rise and Fall Overnight
If you’re going to invest in a 24/7 currency that can change in the blink of an eye, you’d better be prepared to safeguard it. While bitcoin can be one of the most profitable things you ever invest in, it can also turn sour just as quick.
Be sure to invest intelligently, and try your best to stick to data-driven buying times for your best chance of making it out with a profit, or a long-term growth investment. The cryptocurrency market is volatile by nature, so protect yourself, and don’t put all your eggs in one basket.
Can I Trade Bitcoin Whenever I Want to?
Yes, you absolutely can. Bitcoin can be purchased at 3:00 AM, or at noon on Christmas Day – it’s decentralized, so you’re not stuck with the same restrictions as the New York Stock Exchange, for example.
This isn’t just for convenience, it’s intended to serve a greater purpose. You couldn’t have a truly decentralized currency if there were restrictions on it (apart from miners checking for double-spending and things like that).
The market remains open, because it’s technically run by anyone who owns bitcoin at all. You’re part of the reason that the market remains open all the time.
Bitcoin isn’t the only crypto out there, though. While bitcoin can be purchased throughout the day, no matter what, Litecoin (the “altcoin” of bitcoin, like silver to gold) can face restrictions depending on what market platform you use.
This currency doesn’t actually have a closed market hour, nor does any cryptocurrency, but some exchanges will put a restriction on these often less volatile cryptos. They will only allow trading between certain hours, per their terms and conditions.
That doesn’t stop you from going somewhere else to trade altcoins. It’s believed that this is to control the market on these less expensive cryptos so you don’t see high fluctuations, like we’ve seen with bitcoin in the past.
Buying Smarter, Selling Higher
With any investment, you want to maximize your investments. Bitcoin is a different beast entirely, but you can expect to make some good money if you know the market, and you can identify when changes occur that could end in your favor.
Now that you know how to grow your BTC earnings just a little bit more, it’s going to be a lot easier to lock down a regular trading time for yourself.
Last Updated on August 12, 2020 by Eito