Trade Bitcoin Trading

When Not to Trade Bitcoin

There are times when you should not trade Bitcoin because during these times the btcusd trading market becomes illiquid and also unpredictable. Illiquid means that there are fewer traders compared and analyzed to other regular times. The times not to trade the btcusd market are:

  • News Time

Economic reports come out all through the month. You can find their release times ahead of schedule on a Bitcoin Calendar.

There are 3 categories of news: yellow, orange and red, each category having a different impact. High impact economic fundamental news can really move the bitcoin prices, sometimes causing a spike in both directions, before heading towards one direction. These are high risk times where a lot of people get stopped out.

But, it's not just the news that can change the btcusd trading market. What people think and guess about the numbers can make bitcoin prices change early. So, it's not a good idea to trade when news is being released.

Big news events - stuff like the NFP report or a central bank's interest rate decision - can throw the markets into chaos. Prices can swing wildly in seconds, and trading through that kind of volatility is rough.

Economic data can cause a lot of speculation and therefore a lot of bitcoin price movement.

  • Weekends

Weekends bring surprises that gap the BTCUSD open. This shift can hit your crypto account hard.

  • Market closing times- NY closing

A number of trades are closed or swapped at closing time. This makes bitcoin prices change quickly and move in unpredictable ways.

  • Asian Market

During the Asian session volumes are very low and the btcusd market moves in a sideways trading range of about 20 to 30 pips & it becomes very hard and difficult to trade the market because the bitcoin prices falls flat. Unless you're trading JPY and AUD instruments it's best not to trade at this time.

  • Holidays

Avoid conducting transactions during holidays. This is due to the closure of banks, resulting in fewer participants in the BTCUSD market. When banks are closed for a holiday, the volume of trades executed significantly decreases, which can result in reduced market volatility.

Traders of holidays like Christmas and New Year shouldn't trade on these days and should take time off during the week of Christmas up to New Year, date 2, when banks resume their operations. A Financial Economic Calendar will include a list of bank holidays, and traders can stay current with it.

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