When Not to Trade Bitcoin BTCUSD CryptoCurrency
There are times when you should not trade Bitcoin because at this times the online Bitcoin market becomes illiquid and unpredictable. Illiquid means there are fewer Bitcoin traders in the market compared to other regular trading times. The times not to trade BTCUSD 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 Bitcoin - BTCUSD. High impact fundamental news can really move the prices of Bitcoin, sometimes causing a spike in both directions, before price settling and moving 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 report announcements themselves that can affect the market prices. The sentiments and predictions of what the numbers will be can cause the BTCUSD prices to move in anticipation of this data. It is therefore not a good idea to trade during the economic news reports time.
How to Trade News - Bitcoin News Trading StrategySome major economic news like the NFP and Interest Rates decision can cause extreme volatility which is extremely hard to trade and can cause extreme movements in BTCUSD market prices within seconds.
Economic data can cause a lot of speculation and therefore a lot of price movement.
Weekends
A lot can happen over the weekend leading to the market price opening with a large gap. This can cause a big difference in your trading account balance. It is therefore always best to close all your Bitcoin trades before the weekend and do not leave them open over the weekend.
Market Closing Times - NY closing
At the close time of New York trading session a number of trade positions 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 trading range of very few points and it becomes very hard to trade 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 therefore less participants in the online 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 Bitcoin.
Holidays like Christmas and New Year, Bitcoin traders should not trade on these days and should take time off during this week of Christmas up to New Year, until after when the banks resume their operations. An Economic Calendar will include a schedule of bank holidays and Bitcoin traders can keep updated.
