One of the most common questions beginners ask whenever they want to invest in a cryptocurrency is, “when is the best time to buy?”
The crypto market is very volatile, and there’s simply no perfect time to buy any asset in the market.
Instead, some indicators, such as Bitcoin rainbow charts, show you the market situation. With information from those indicators and other professional analyses, you can decide if it is the best time to buy Bitcoin or not.
Here, we will discuss the best time to buy Bitcoin and different indicators that can help you decide.
There’s no ideal time to buy a cryptocurrency, including Bitcoin, but there are certain days or months when you have better chances of getting a good deal.
The price of cryptocurrencies changes from time to time, and the price of Bitcoin can be at $20,000 in the morning and then fall to $18,000 in the evening.
Despite the volatility in the market, there are just certain periods in the market where you can get a good deal. Just like you can get a good deal, there are times when you can get a bad one.
Below, you will discover the days of the week and months considered great for buying Bitcoin. Note that whatever is written here is based solely on trends and records; there’s no standard theory behind it.
The activities in the crypto market are similar to some other markets; at least, there’s buying and selling going on.
In any place where trading takes place, you can apply some principles of economics. Here, you will learn some economic principles you can apply to buy Bitcoin.
First is using the demand and supply principle when buying Bitcoin. Most times, the principle of demand and supply is based on bullish and bearish trends.
The activities in the Bitcoin network tend to go down once the market is experiencing bearish trends. On the other hand, a bullish trend generates a lot of activity in the market.
Also, you can try to buy Bitcoin outside business hours; there’s much activity going on in the market during business hours.
Within the 24 hours of the day, there are certain times when buying and selling Bitcoin becomes easier.
You can never predict the ideal time to buy Bitcoin, but records show that the price of Bitcoin tends to drop in the afternoon.
So, you can get a good deal in the market when you buy Bitcoin between 3 to 4 pm. When buying during this time frame, you can also compare the price of Bitcoin between exchanges, as there tend to be differences among them.
Since more traders are more active during the workdays, Mondays and Sundays remain some of the best times to buy Bitcoin within the week.
While Sundays are preferable, you can also buy on Monday morning before the market gets busy.
Since fewer people are active on Sundays, buying Bitcoin becomes easier as the network is not congested. Friday isn’t a good time to buy since everyone tries to conclude their trade for the week during this day.
From what has happened in the past with Bitcoin, August remains one of the best months to purchase Bitcoin. The history of Bitcoin and market trends shows August has provided a better market for trading Bitcoin and other cryptocurrencies.
Now you know some of the predicted times of the day, days of the weeks, and months that are preferable for buying Bitcoin, it is time to learn about indicators.
Indicators are tools that provide us with data needed to make decisions that will affect our investments.
The primary indicator you use depends on the activity you want to carry out; it can either be investment or trading.
With the RSI, you can determine if Bitcoin is overbought or oversold on the crypto market.
This is a great indicator for those starting in the crypto market; it is ideal for beginners since it is simple to understand.
It has a number system ranging from 1 to 100; a number lower than 50 means fear, and a number higher than 50 means greed in the market.
The Bollinger band is a great indicator created by a financial analyst named John Bollinger and used for Bitcoin’s technical analysis.
This indicator uses a combination of momentum oscillators and trend analysis to predict the Bitcoin market.
This indicator is based on previous price action and is of two types; simple moving averages and exponential moving averages. Others include the bitcoin rainbow chart and linear regression channel
The crypto market has permanent volatility, making it difficult to predict the best time to buy a cryptocurrency like Bitcoin.
Sundays and early Monday mornings are usually the best times to buy Bitcoin, and August is the preferred month. All these are predictions and not based on any standard theory or law.
Besides the predicted times and days for buying Bitcoin, a Bitcoin indicator helps make better trading decisions.