If investors knew the best periods to buy Bitcoin, all of them would be rich. There would be no need to read articles such as this or study market trends to develop decent trading and investment strategies.
Bitcoin is one of the most volatile assets you could ever trade. As such, predicting its trends is far from straightforward. There are few consistent markers to serve as indicators for market prices. Even the existing ones are not useful in all circumstances.
For example, the Bitcoin Rainbow Chart is only fairly accurate for long-term predictions. The prediction tool is lacking for investors looking to make gains in the short term.
Investors aren’t helped by even historical trends or expert analysis, as they often fall short.
To make profits in the market, there’s no room for uncertainty. Calculations, inferences, and deductions have to be precise, and strategies that do not follow this rule run the risk of failing.
So, when, then, is the best time to buy Bitcoin? We answer your questions and more in this article. Let’s go!
Buying Bitcoin
Anyone can buy BTC today. All that’s needed is a verified account with a cryptocurrency brokerage and a secure wallet.
BTC appeals to many investors as a solid asset due to its consistency and reliability over the years. Like other cryptocurrencies, it has experienced boom and bust cycles. However, unlike many tokens, BTC has held its own for many years, holding on to its place as the standard bearer for all things crypto.
Today, many altcoins offer more utility than BTC, which is little more than a means of digital payment. Yet, its value continues to rise, and its stock grows, deterred only by a few bad spells of low value. Even with these infrequent price corrections, Bitcoin has proved to be an excellent investment with a high long-term yield.
However, not everyone is lucky when it comes to buying and investing in Bitcoin.
As far as financial investments go, you couldn’t make better decisions. The investors who profited the most from BTC were those who bought tokens in the early days of the cryptocurrency when it was worth about $1. Today, Bitcoin is worth nearly $20,000. Given that this asset’s value appreciated so well in about ten years, it’s understandable that there’s not much interest and speculation in its market fortunes today.
Nevertheless, its current value is far from its peak value. Bitcoin is currently undergoing a significant market crash- which admittedly mirrors the rest of the global stock market.
In late 2021, Bitcoin hit highs of $69,000, with the unprecedented boom leading market analysts to predict higher values in subsequent months. However, their predictions have turned out to be the opposite, as BTC suffered a drastic nosedive with ripple effects felt across the entire cryptocurrency market.
In 2022, we’ve observed the extent to which altcoins are affected by Bitcoin’s value. Although some new tokens are doing reasonably well, the bulk of the established big names in crypto have their fortunes mirroring BTC’s, and it’s not looking pretty at the moment.
The intense market fluctuations confuse investors, with many selling off digital assets rather than risk taking on even more losses.
Nevertheless, there’s no sure way to know that selling off BTC assets in this period is the best decision. If its value were to spike noticeably in the coming weeks or months, investors who sold off assets quickly would be left ruing their choices.
On the other hand, if BTC continues to depreciate, selling it now might be the best decision. Seeing how tricky it is to monitor market trends, it can be frustrating to attempt to decipher the patterns affecting BTC’s rise and fall.
These patterns do not provide clear strategies to predict BTC’s volatility, but they provide a guide for investors when developing their investment strategies.
Without further ado let’s examine some factors that affect Bitcoin’s market fortunes without further ado.
Real-world stocks
Surprisingly, real-life stocks indirectly affect Bitcoin’s market trends.
For instance, in the past two years, Standard and Poor 500 Index stocks have been following the same trajectory as BTC.
Many investors hedge against inflation by investing in cryptocurrencies, of which Bitcoin is the most prominent. With the global financial market on a downward trend at present, it’s only natural that Bitcoin follows suit.
Demand and supply
The simple market forces of demand and supply are the biggest determinants of BTC’s rise and fall.
When the demand for BTC is high, its value automatically rises. The opposite is the case when demand is low.
However, BTC has a fixed market supply, with the developers “burning” tokens every few years to keep the price stable, so this is another factor to consider.
Market speculation
Over the years, we have seen just how much of an impact social media and public speculation can have on Bitcoin’s fortunes.
It doesn’t matter whether the speculation is good or bad. In the crypto market, there’s no such thing as bad publicity, as all publicity is publicity. Publicity spurs demand, which in turn leads to price hikes.
Which Periods Should You Buy Bitcoin?
BTC accounts for nearly $200 billion of all the money on the planet, and anyone can purchase it. However, due to its notorious volatility, buying it at the wrong time can severely affect your profits.
Hence, you have to know when the time is right to purchase so you can benefit from good deals.
In arriving at our recommendations, we have taken into consideration historical data, as this is one of the most accurate sources of predicting BTC futures.
Time of the day
After ascertaining the average price of Bitcoin, you should consider the time of day you would like to make your purchase.
Prices change every hour, and there’s no knowing where the trend might lead.
Afternoons are historically the best time of day to buy BTC, especially around 3 PM and 4 PM. If, for some reason, you’re unable to make a purchase, you can wait till late in the night to buy.
This is because BTC’s value is lowest when there’s reduced trading. In this period of slight lull, you can get good value from your purchases and save a little.
Day of the week
Historically, Monday is the day BTC prices are at their lowest. While this trend varies across different countries and cryptocurrency exchange platforms, it holds fairly true most of the time.
The next best day to purchase Bitcoin is a Sunday.
On the other hand, Fridays have historically seen the highest price increments for investors looking to buy Bitcoin, so you might want to steer clear of purchasing on this day.
Month of the year
Ideally, August is the best time to purchase Bitcoin. Historical market trends point to this fact, and investors have a good chance of finding the most favorable prices at this time of the year.
Should You Buy the Dip and Sell High
One of the most popular cryptocurrency trading strategies is buying low and selling high. It involves purchasing a token at the floor price, holding on to it while its value steadily rises, and finally selling it off for a profit when its value peaks.
While you can earn some money from daily trading, Bitcoin is an asset you should consider holding on to for a long time. Given its prominence in the market today, its value as a digital asset will likely persist for a long time, as you’re advised to take advantage. With Bitcoin, you might have to tweak this strategy to adapt to the long term.
Should You Invest in Bitcoin
While the prospect of altcoins can be tempting, given that they’re cheaper, Bitcoin is a wise option because it has an excellent track record.
Many tokens come and go, enjoying brief boom periods before eventually tailing off into near-oblivion. Some other coins perform slightly better, but cannot be trusted to appreciate further, with their values remaining stagnant.
As an investor, you need an asset with long-term growth potential, and if Bitcoin cannot do this for you, arguably, no other tokens will.
Conclusion
There’s no fixed time to buy Bitcoin, as its price constantly changes. If the market is already down, like it currently is, it might be wiser to avoid purchasing altogether. However, such times are arguably the best time to invest.
If you have an appetite for risk, a bearish market run should not prevent you from investing in Bitcoin assets. Instead, you can buy the dip and hold on to the tokens for as long as you can.
Experts predict that Bitcoin’s value will rise in the coming months, so there is optimism in that regard.
In the meantime, try to purchase Bitcoin on Mondays, around 4 PM during the day, in the middle of the year, or very late at night. It’s not an exact science, but this advice has historical backing, so it’s worth a lot.
