Longhash data analysts investigated what time the biggest price fluctuations are. And guess what? There is one hour a day, namely between 2 and 3 a.m. that the rate of bitcoin fluctuates the most. Those will be sleepless nights …
The conclusion of the Longhash study is therefore that the highest volatility of the price of bitcoin is between 2 and 3 a.m. Dutch time. Now it has to be said that Longhash did not look at the entire market. The research agency used used Crypto Data Download to analyze the Coinbase trade data between July 6, 2017 to July 2, 2019.
The researchers looked at the highest and lowest prices during a one-hour period. They compared this with the remaining 23 hours of a day.
America and Asia act simultaneously
The results of the past two years show that within the 2 and 3 hour period, the price of bitcoin showed the highest volatility. The possible reason is because this time corresponds to the beginning of the evening in North America but also to the beginning of the working day in large parts of Asia.
It is and remains an assumption, but it is certainly plausible that this volatility is due to the fact that Western and Asian traders were trading at the same time. Traders in Asia wake up and respond to the cryptonews of the day. At the same time on the other side of the world, the dining table is cleared and American traders dive behind their computers to see how Asian traders react to the crypto news of the day.
Not a perfect time
The graph also shows that there is no “perfect” time to trade Bitcoin. The data set from the past two years shows that traders buy bitcoin more often at the low point of the day instead of at the high point of the day between 5 a.m. and 2 p.m. (Dutch time). Longhash warns that the differences are miniscule and advises that traders should not apply the information to their daily trading strategy.