What time of day is the Bitcoin price most volatile?

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2021-12-26 21:51:15

BILLIONThe cryptocurrency market is known for its very high price volatility. This is a paradise, especially for professional day traders.

Unlike traditional exchanges, cryptocurrency exchanges are open 24/7. Bitcoin price movements change depending on the time of day, as there are many active traders all over the world and they are located in different time zones.

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Over the course of 24 hours, certain times have different levels of price volatility.

When is the most volatile bitcoin price?

For a better overview, let’s analyze the Bitcoin price behavior in detail over the past two years.

In the chart below, the number of times per hour the Bitcoin price hits daily highs (pink) and daily lows (blue) are plotted.

The chart clearly shows that in the last two years, at 24 hours and 1 am UTC, equivalent to 7 am and 8 am Vietnam time, Bitcoin price has the highest volatility.

Especially at 1 a.m. (8 a.m. ET), Bitcoin price regularly hits daily highs and lows. This means that the Bitcoin price is often highly volatile at these times.

The reason for this was quickly found, now nMany people from North America are out of work, and in Asia, the workday has just begun. At this time of day, Western and Asian traders are most likely to be active at the same time, bringing volatility to the crypto markets.

Asian traders are waking up and reacting to the news and North American traders are reacting from the Asian markets.

So for day traders, the morning hours are the most important. At this time, the trading volume is highest and provides traders with enough liquidity to trade even with substantial amounts.


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