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

Scheduled economic reports are released/announced throughout many times of the month. These can be found, in advance on a Bitcoin Calendar

There are 3 categories of news; yellow, orange and red, each category having a different impact. High impact 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.

However, it isn't just the announcements themselves that can affect the btcusd trading market. The sentiments & predictions/forecasts of what the figures will be can cause the bitcoin prices to move in anticipation. It is hence not a good idea to trade during news hours.

Some major economic news like the NFP & Interest Rates decision can cause extreme volatility which is extremely hard to trade and can cause extreme movements in markets within seconds.

Economic data can cause a lot of speculation and ==22==thereforehence a lot of bitcoin price movement.

  • Weekends

A lot can happen over the weekend leading to the btcusd market opening with a large gap. This can cause a big difference in your cryptocurrency account.

  • Market closing times- NY closing

At the close time a number of trade positions are being closed or being swapped. This will lead to volatility in bitcoin prices & can cause the bitcoin price to move erratically.

  • 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

Do not transact during Holidays. This is because the Banks are closed and therefore less participants in the btcusd market. If banks close for a holiday then the volume of trades carried out is greatly reduced. This can lead to low market volatility.

Holidays like Christmas and new year traders shouldn't trade on these days & should take time off during the week of Christmas up to new year, date two when banks resume their operations. An Economic Calendar will include a schedule of bank holidays and traders can keep updated: Examples of a Financial Economic Calendar.

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