Actually, traders have a fundamental question. When will bitcoin rise and price fall? The article is about this question.
Bitcoin movement claim
There is no way to know for sure the answer to the question. But it’s always worth considering various historical factors to analyze how other traders have behaved in the past.
For example, do people tend to trade more at appropriate times of the day or on certain days of the week?
About a year ago we addressed this issue by conducting an analysis of price trends on a daily and hourly basis. But a lot has changed in the bitcoin world since then! We decided to take another look and see what the Bitcoin price and volume trends are going to be in 2020 and 2021.
Specifically, we analyzed hourly bitcoin price highs and lows and processed volume data via CryptoDataDownload from Gemini, starting on January 1, 2020 and ending on February 22, 2021. For example, we received at 1:00 p.m. every Monday at 01:00 UTC on Gemini the “high” price. We also averaged it to find the average BTC price over the last 14 months.
Average BTC Prices by Day of the Week and Time of Day
So what did we find? On average, Bitcoin showed a low initial trend. Also, its price has been slowly increasing over the week. On average, it reached its weekly high on Saturday or Sunday. In general, it is remarkable how stable the model is. Big swings benefitting are no words. There is only a slight upward trend.
Although not unexpected here, there are larger fluctuations in the daily process volume. Trading appears to peak around 16:00 UTC on weekdays. That makes sense – the Gemini exchange caters primarily to North American and European users. Because of this, sudden increases occur when normal working hours overlap. Process volumes are lower on average at weekends.
While these trends are different, don’t get carried away. You don’t have to be prescient, and averaged over a year of hourly trading, these microtrends are unlikely to beat the larger market forces. In other words, if Bitcoin’s price is rising on a Sunday evening, don’t expect it to start falling at midnight. Because that’s what happened on average last year.