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

Throughout the month, scheduled reports about the economy are released on many different days. These reports about the economy are the USA's economic reports - you can find when these reports will be released in advance by looking at an Economic Calendar that is available online from various Financial News Agencies.

Economic news falls into three levels: yellow, orange, and red. Each affects BTCUSD crypto prices differently. High-impact news shakes Bitcoin prices hard. It can spike both ways before settling in one direction. These times bring high risk. Many traders get stopped out. Stay out of trades then.

But the price can change not only when the economic data reports are released. How people feel and what they expect the numbers to be can make the BTCUSD prices move before the news comes out. So, it's usually not a good idea to trade when important news reports are being released.

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

Weekends can bring big price gaps at market open. This affects your account balance a lot. Close all bitcoin trades before the weekend to avoid risks.

Market Closing Times - NY closing

At the close of the New York trading session, many trades are either closed or swapped, often causing significant price volatility. This may lead to erratic movements in cryptocurrency prices such as Bitcoin.

Asian Market

During the Asian market session, trade amounts are very low, the market moves very little, and it is hard to trade because prices do not change much. It is best not to trade Bitcoin at this time.

Holidays

Avoid trading Bitcoin on holidays. This is because banks and other financial places are closed, so there are fewer people trading in the financial markets. When banks and other financial places close for a holiday, the number of financial deals goes down a lot. This can make the price of BTCUSD not change much.

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.

Learn More Courses and Lessons: