Know the Best Time to Buy and Sell Bitcoin

Some guy who had invested $100 in Bitcoin (BTC) in January would have seen it more than quadruple by June 2019 if they know the best time to sell.

However, there are often series of questions regarding the best time to buy and sell bitcoin “Should they sell their entire holdings or portion of their holdings leave it as it is hoping that the recent decline is only a temporary price correction?

According to the historical data, August has been bitcoin’s worst-performing month between 2010 and 2018. Based on the evidence, April, June, and July have seen positive aggregated price movements since 2010.

Meanwhile, the trend holds through 2019, and that’s why bitcoin was in for a continuation of its hot 2019 streak. July, however, held the lowest positive aggregated median bitcoin return under the period being considered.

In a tweet by Timothy Peterson on Wednesday (June 19, 2019) the bitcoin analyst revealed a trend which shows a cooling period for bull rallies between August and September. This conclusion comes from examining the median BTC monthly returns since 2010.

According to Economists, When is the best time to buy and sell bitcoin

Yukun Liu and Aleh Tsyvinski analyzed seven years of BTC price data to figure out which indicators can be used to determine the future price of BTC.

Their findings, published in The National Bureau of Economic Research, established that all cryptocurrencies are entirely distinct from stocks, currencies and other commodities in terms of factors affecting their market movements.

In contrast, we show that the cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets,” the study explains.

Specifically, we determine that there is a strong time-series momentum effect and that proxies for investor attention strongly forecast cryptocurrency returns.”

Is it a good time to buy cryptocurrency? Or better to ask is it the right day today to buy BTC? Let’s try to analyze the daily opening price of BTC for a several-year period.

Best day of the week to buy bitcoin

Below, we have the data from the CoinMarketCap, extract the exact day of the week from each line and then calculate the average price of BTC for each day of the week. As you can see, the average Bitcoin prices are the lowest on Sundays, but Monday is very close too.

Theory #1

The analysis generally follows the same trend, but this time average Bitcoin prices are lowest on Monday. Sunday/Monday might be the cheapest days (thus, providing good time to buy BTC) since trading tends to slow down over the weekends and there is generally less demand. While the highest average Bitcoin prices in both analyses are on Fridays closely followed by Saturday.

Theory #2

There is another theory that many people interested in Bitcoin arrive at the decision to make a purchase over weekends. These decisions are then implemented at the beginning of the week. The first purchases are made on Mondays. On Tuesdays those who were waiting for confirmation from rising prices follow suit and buy as well. Thereafter the action tails off until the beginning of the next week.

Theory #3

Experienced traders suggest avoiding the middle and ends of the month. Typically, this is when people get paid and usually, you’ll see an increase in purchasing around those times which drives the price up.

If you don’t understand what cryptocurrency is, you should not buy it. Do not frantically chase quick profits or parabolic price patterns. Nowadays, there are multiple resources available on the Internet including our website that can help you gain all the necessary knowledge. Yes, it may take time. But this is the only right way to start crypto trading.

To learn about Bitcoin, stay glued to RedimIT and browse our list of reading materials for high-quality crypto education!

Based on the trend-dependent price movement, you can see that prices are usually the lowest on Fridays and the highest on Mondays during downward trends. In an uptrend, the prices are the highest on Saturdays and the lowest on Mondays. This makes perfect sense given the general trend direction.

If you want to sell your Bitcoin during a downtrend, chances are high that you’ll be getting the highest price on a Monday.

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