When Not to Trade Bitcoin BTCUSD Cryptocurrency

Because the BTCUSD market is illiquid and volatile at certain trading periods, you should not trade Bitcoin during those times. Illiquidity means that there are fewer traders in the market than at other regular times. The days on which you should not trade Bitcoin are:

News Time

Scheduled economic data reports are released throughout the day many times of the month. These economic data reports are the USA data economic reports - this schedule of economic reports can be found in advance on an Economic Calendar available online from various Financial News Agencies.

There are 3 categories of economic news: yellow, orange and red, each category having a different impact on the price of BTCUSD Crypto - BTCUSD. High impact fundamental news can really move the prices of Bitcoin, sometimes causing a spike in both directions, before price settling & heading towards one direction. These are high risk times where a lot of people get stopped out and it is best to avoid trading during these times.

However, it is not just the economic data report announcements themselves that can affect the prices. The sentiments & forecasts of what the figures will be can cause the BTCUSD prices to move in anticipation of this news data. It's hence not a good idea to trade during the fundamental news reports time.

How Do You Trade News - Bitcoin News StrategySome major economic/fundamental news like the NFP and Interest Rates decision can cause extreme price volatility which is extremely hard to trade and can cause extreme movements in BTC USD Crypto market prices within seconds.

Economic data can lead to substantial speculation, and consequently, considerable price fluctuations.

Weekends

A lot can happen during the weekend leading to the price opening with a big gap. This can cause a big/large difference in your account balance. It is therefore always best to close all your Bitcoin transactions before the weekend and do not leave them open during the weekend.

Market Closing Times - NY closing

At the close time of New York trading session a number of trades are being closed or being swapped. This will lead to volatility in prices of financial instruments & can cause the price of Bitcoin to move erratically.

Asian Market

During the Asian market session financial transactions trade volumes are very low and the market moves in a range of very few points and it becomes very hard and difficult to trade the market because the prices fall flat. It is best not to trade Bitcoin at this time.

Holidays

Do not trade Bitcoin during Holidays. This is because the Banks and other financial institutions are closed and hence less market participants in the financial markets. If banks and other financial institutions close for a holiday then the volume of financial transactions carried out is greatly reduced. This can lead to low volatility in the price of BTCUSD.

Holidays like Christmas and New Year, Bitcoin traders shouldn't trade on these days and should take time off during the week of Christmas up to New Year, until after when the banks resume their operations. An Economic Data Calendar will include a schedule of bank holidays and Bitcoin traders can keep updated.

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