What Is The Best Time To Trade Bitcoin?

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The best time to trade Bitcoin depends on various factors, such as how volatile the market is and how much trading activity there is. For optimal Bitcoin trading, focus on high-activity periods: 13:00 to 17:00 GMT when European and American sessions overlap, 13:00 to 21:00 GMT during the American session's peak, and 7:00 to 9:00 GMT when Asian and European sessions intersect.

Bitcoin trading attracts many investors due to its volatility and potential for high profits. However, to make the most of the market's opportunities, it is important to choose the right time for your trades. In this article, we will look at the best time to trade Bitcoin for the best results.

What is the best time to trade Bitcoin?

When trading Bitcoin, different time periods have both increased levels of trading volume and volatility. Knowledge of these opens up opportunities for significant profits.

Overlap of European and American sessions. One of the most active periods for Bitcoin trading. When the London session intersects with the New York session, the market experiences maximum liquidity and volatility. This occurs from 13:00 to 17:00 Greenwich Mean Time (GMT) when the two largest financial centers in the world operate simultaneously.
Opening of the American session. The time from 13:00 to 21:00 Greenwich Mean Time (GMT) is also characterized by high activity. During this period, American investors are actively trading, which can lead to significant fluctuations in the price of Bitcoin. News and economic data from the United States released during this time can have a significant impact on the market.
Overlap of Asian and European sessions. From 7:00 to 9:00 Greenwich Mean Time (GMT) trading volumes are also increased. During this period, the London session opens, while Asian markets are still active. This time is often characterized by sudden price changes and high interest from traders.

Specific timeframes to consider:

Weekdays trading - volume and market activity tend to be higher during the weekdays compared to weekends. Weekdays see more institutional and professional trading, contributing to higher liquidity and volatility.
Early in the week - Monday and Tuesday can sometimes see significant price movements as markets react to news and events from the weekend. This can provide good trading opportunities early in the week.
Midweek - Wednesday and Thursday often have steady trading volumes and can be less volatile compared to the start or end of the week. These days might be ideal for traders looking for consistent patterns without extreme volatility.
End of the week- Friday can be unpredictable as traders close out their positions before the weekend. This can lead to increased volatility and potential trading opportunities.

Bitcoin trading in off-exchange time

On cryptocurrency exchanges, Bitcoin and other tokens are traded 24/7. This is one of the key differences between cryptocurrency markets, traditional currency and stock exchanges, which work only at certain times, allow themselves short trading sessions and do not deal on weekends and holidays.

Bitcoin trading on weekends has its own peculiarities:

Low liquidity: During weekends, the trading volume of crypto-assets wears significantly lower, as large players prefer to utilize the correlations of cryptocurrencies with traditional assets and do not enter the market during OTC hours.
Volatility: With low liquidity, speculative volatility and slippage appear, as there are simply not enough participants to correctly close positions at the desired price. All the more so because of pampa and other active speculations.
Active reaction to news: Over the weekend there can be significant price changes due to unexpected news or events, and crypto markets will work them out immediately, although the main exchanges will wait for Monday.
Arbitrage opportunities: Due to differences in activity between different exchanges and markets, arbitrage opportunities may arise over the weekend.

If you plan to trade Bitcoin (or any other crypto!) over the weekend, it's important to keep these factors in mind and be prepared for possible sudden price changes.

Major news and events that impact Bitcoin price

The price of Bitcoin is subject to significant fluctuations, and one of the key factors influencing these changes is news and events on a global scale. Understanding what events can cause sharp price changes can help traders and investors make more profitable decisions.

Regulation and legal environment. Changes in cryptocurrency legislation and regulation can significantly affect the market. For example, announcements of bans on trading or mining Bitcoin in large or important jurisdictions for cryptocurrency circulation can cause a sharp drop in price. On the contrary, positive news, such as the adoption of cryptocurrency as legal tender, as happened in El Salvador, can cause the rate to rise.
Economic data and policy. This includes data on inflation, interest rates and unemployment rates. For example, statements from the US Federal Reserve about a possible increase in interest rates could reduce the attractiveness of Bitcoin as a safe-haven asset and lead to a fall in its price. Political events such as elections or international conflicts can create uncertainty in the markets and affect the price of cryptocurrencies.
Technological advances and updates. The development of blockchain technologies and updates to the Bitcoin network (such as the Lightning Network) could increase investor interest and contribute to price growth. On the contrary, vulnerabilities and attacks on the network can cause panic and lead to a sharp depreciation.
Major investment and adoption. Announcements of large investments in Bitcoin by institutional investors such as Tesla or MicroStrategy usually cause a wave of positive market sentiment and a rise in the price. Partnerships and integration of Bitcoin into payment systems such as PayPal or Visa are also helping to strengthen the rate.
Market sentiment and psychological factors. The emotions and sentiments of market participants can have a short-term impact on the price of Bitcoin. News of cryptocurrency exchange hacks or major thefts can cause panic and mass selling. On the contrary, positive articles in the media and analyst forecasts can cause a wave of purchases.

Risk management and volatility control

Bitcoin trading is subject to high volatility, making risk management an essential aspect of a successful strategy. Sudden price changes can either lead to significant profits or cause significant losses.

Portfolio diversification. One of the most effective ways to manage risks. Its essence is in the distribution of investments between various cryptocurrencies and other financial instruments to reduce the overall risk.
Setting stop loss orders. Helps limit losses in the event of a sharp price drop. These orders automatically close a position when the price reaches a predetermined level, protecting capital from large losses.
Trading using leverage. While leveraged trading can increase potential profits, it also increases risks. Beginner traders are advised to use minimal leverage or avoid it altogether until they gain sufficient experience.
Regular market monitoring. Constant analysis of market conditions and news helps you respond to changes in a timely manner and adjust your trading strategy. Keep track of key events that could affect the price of Bitcoin to make informed decisions.
Emotional discipline. Managing emotions is an important skill for any trader. Panic and euphoria should be avoided by adhering to a pre-developed plan and strategy.

We have selected several cryptocurrency exchanges where you can test your Bitcoin trading skills. Here you can also trade other digital assets, including valuable ETH, DASH, LTC or popular meme tokens such as DOGE. You can trade them freely, place bets and withdraw money to your bank accounts easily.

Best cryptocurrency exchanges
	Coins Supported	Min. Deposit, $	Spot Taker fee, %	Spot Maker Fee, %	Withdrawal fee, %	Open account
OKX	329	10	0,1	0,08	0,0004 BTC 2,6 USDT	Open an account Your capital is at risk.
Kraken	278	10	0,4	0,25	0,0005 BTC	Open an account Your capital is at risk.
Crypto.com	250	1	0,5	0,25	0,0005 BTC	Open an account Your capital is at risk.
CoinMetro	72	1	0,2	0,1	0-0,1%	Open an account Your capital is at risk.
Ledger Wallet	1817		0	0		Open an account Your capital is at risk.

Bitcoin trading requires the ability to choose the optimal time to make trades

In all these years I’ve traded Bitcoin, I’ve observed that BTC can exhibit drastic price swings in response to news that impacts global financial stability or economic forecasts. For instance, during times of significant economic uncertainty or major announcements from influential central banks like the Federal Reserve or the European Central Bank, Bitcoin often experiences heightened volatility. This means that strategic traders can exploit these windows by preparing for rapid movements either before the news is released or immediately after, depending on the market sentiment.

Another important aspect is to pay attention to the behavior of institutional investors and large-scale Bitcoin transactions. Platforms that track large Bitcoin transfers, such as Whale Alert, can provide crucial hints about potential market moves. When you see substantial transfers into or out of exchanges, it can signal impending large-scale buying or selling pressure. Knowing of these patterns, you can time your trades to either ride the wave of momentum created by these big players or to position yourself favorably just before these moves are executed.

Conclusion

Bitcoin trading requires not only knowledge and experience, but also the ability to choose the optimal time for transactions. Given the high volatility of this asset, choosing the right timing can significantly impact the performance of your trading strategy. For optimal Bitcoin trading, focus on high-activity periods: 13:00 to 17:00 GMT when European and American sessions overlap, 13:00 to 21:00 GMT during the American session's peak, and 7:00 to 9:00 GMT when Asian and European sessions intersect. These windows offer maximum liquidity, volatility, and opportunities for significant price movements. Additionally, stay alert to news and economic data released during these times for added advantage.

FAQs

What periods of the day are most profitable for trading Bitcoin?

The time from 13:00 to 17:00 Greenwich Mean Time (GMT) is the most active, as this is the intersection of the European and American trading sessions, which leads to high liquidity and volatility.

How to choose the right time to trade Bitcoin based on your time zone?

Determine when the world's largest exchanges are open and choose the overlapping session times that are most convenient for your time zone. For example, crossing London and New York is a great choice.

What tools help you determine the best time to trade Bitcoin?

Use analytical tools such as trading volume charts and volatility indicators to identify periods of peak activity. Economic event calendars are also useful for keeping track of important news.

How to properly plan Bitcoin trading during periods of high volatility?

During periods of high volatility, use stop loss orders to limit losses and lock in profits at predetermined levels. It is also recommended to trade in small volumes to minimize risks.

Team that worked on the article

Igor is an experienced finance professional with expertise across various domains, including banking, financial analysis, trading, marketing, and business development. Over the course of his career spanning more than 18 years, he has acquired a diverse skill set that encompasses a wide range of responsibilities. As an author at Traders Union, he leverages his extensive knowledge and experience to create valuable content for the trading community.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

Bitcoin

Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.

Diversification

Diversification is an investment strategy that involves spreading investments across different asset classes, industries, and geographic regions to reduce overall risk.

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.

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