Bitcoin investing means walking on a double-edged sword. It is so volatile that some investors turned into a millionaire, while others were left scorching. You may be thinking about entering into the crypto market, but are still skeptical whether the time is right or not. The reason is that traders who had purchased Bitcoin in 2017 ended up losing, while investors who invested in 2019 are seated in a profitable position.
Therefore, as a new crypto-trader, you desire to understand the best time for buying Bitcoin and which analysis tool can help you get to the near-accurate breakdown.
Best time to invest in Bitcoin
Crypto world is still in its early stages, so there are very few traders that have concrete financial knowledge. The majority of crypto HODLers are self-educated, while others depend on borrowed knowledge. It doesn’t matter where the skills come from as long as it is correct. Observations from the past seven years were analyzed by economists from Yale University. A model was developed to predict Bitcoin’s price from past price action. According to research, cryptocurrencies differ widely from traditional assets concerning factors determining volatility.
Unlike stocks & commodities, Bitcoin depends heavily on momentum. It means if the performance of Bitcoin is fine then it will continue for the short-term. As per research, investors should buy Bitcoins if its price increases more than 20% within a week.
Best day to invest in cryptocurrency
Unlike the stock market, cryptocurrency bazaar is open 24/7. It means cryptocurrencies can be bought, sold, or exchanged anytime. With the launch of web services and mobile apps, Bitcoin buying has become easy. You just need a good internet connection.
No trading sessions mean no volume issues but there are specific parameters to consider while investing in crypto space. Analysis from multiple sources reports that Sunday and Monday are the best days for investing in Bitcoin. The main reason is that these days the prices are prone to be lowermost.
Models to determine right Bitcoin timing
Below are a few concepts that can help crypto-traders determine an ideal time to invest in the crypto world.
- During weekends – Bitcoin demand plummets during weekends, forcing its price to move lowest on Mondays. Alternatively, the price of Bitcoin is speculated to be highest on Fridays & Saturdays.
- High volumes – During weekends, people get time to study and decide to invest in BTC, so they execute orders at the start of Monday. Thus, the volumes increase and as the week passes more vigilant behavior is expected.
- Avoid the first 15 days of the month – Seasoned traders avoid investing in crypto during the first two weeks of the month because people get their salary. With the cash, they invest in Bitcoin, drive demand and thus price increases. The best time is to buy in the 3rd and 4th weeks of the month.
Bitcoin is not tied to any timeframe but a general observation reveals that the price of Bitcoin increases rapidly and declines steadily as it enters a stability period. It is hard to forecast the best time for investing in Bitcoin. Its volatility will always be high, so nobody can say what will occur next moment, week, or month.