Analysts at Longhash, a startup incubator whose main goal is to accelerate the development of blockchain technology, have compiled a report showing the time span during which bitcoin (BTC) is most volatile.
When it comes to trading, cryptocurrencies are some of the most complicated assets to understand. The strong volatility is always the main factor and the main difference with other sectors is that the crypto market is open 24 hours a day, 7 days a week.
Longhash has collected data from Crypto Data Download, comparing the price of bitcoin (BTC) over the past two years, considering an hourly time frame, from July 6th, 2017 to July 2nd, 2019. For each of these days, the graph shows the absolute maximum in pink and the absolute minimum in blue.
As can be seen from the image above, the time at which bitcoin (BTC) is most volatile is included in the range from 00:00 to 01:00 UTC. This is interesting when considering that at that time it’s evening in America, while in Asia a new day begins.
It shows exactly the moment when Western and Asian traders find themselves simultaneously operational. Basically, Longhash thinks that in this time range Asians respond to the latest news and, as a result, America reacts to the behaviour of Eastern traders.
However, as interesting as it is to understand which is the right time to buy bitcoin (BTC) taking advantage of its high volatility, it is not possible to obtain this data by observing a graph of this type. Some considerations can be made based on the fact that the daily minimums are recorded, in most cases, between 03:00 and 12:00 UTC, so in the morning in Europe.
However, this is not a really substantial difference, nor is there a high enough percentage to indicate that, in this time slot, there will be a daily minimum for bitcoin (BTC).