1 AM UTC Is the Most Volatile Hour for Bitcoin: Research
A recently published report from Longhash found that Bitcoin’s most volatile trading hours occur between midnight and 1 a.m (UTC). The data analytics collective used Crypto Data Download to analyze Coinbase trading data from July 6, 2017, to July 2, 2019. The team observed hourly high and low prices for each hour of each day and then compared this data set to the remaining 23 hours of each day.
As LongHash found, 1 AM UTC saw the most activity on crypto markets followed by midnight over the analyzed period, which is purportedly caused by crossing trading hours in Asia and North America.
These hours are one of the times of day when Western and Asian traders are most likely to be active simultaneously, LongHash suggested, adding that 1 AM UTC is the beginning of the workday in Asia and the beginning of the evening in North America. As Asia’s traders are reacting to the news of the day in the morning, North American traders are still awake to respond to that reaction, the firm wrote.
The chart also shows that there is not a routinely ‘perfect’ time of day to trade Bitcoin and the data set from the last two years suggests that one would have been more likely to buy into a daily low than a high if the purchase was made between 3 a.m. to noon UTC. Longhash cautions that the differences are minuscule and advises that traders not apply the information to their daily trading strategy.
Ultimately, time and Bitcoin’s price action show that time spent invested in the digital assets is much more fruitful than attempting to time the market and purchase on price swings. A quick look at any long-duration chart supports this conclusion.