We analyzed a recent study on bitcoin market compared to fiat which took in consideration patterns between friday and monday on a 2 years period of time. The results were interesting.
The examined graph was a hourly timeframe and the period of time was 2 years. The data was provided by cryptodatadownload. The goal of the study was to find if there could be a possible pattern identifiable into data, which may lead to trading opportunities in that market.
How data was analyzed?
How was this study conducted? The methodology used was to find an average price for opening, closing, maximum and minimum on an hourly basis for each week.
Then, for example, the maximum price was considered every Monday at 6 am; the average was calculated to arrive at an average value. This was repeated for each hour, on a daily basis, for a total period of two years.
When was lowest price found?
The researchers found that the lowest average price for Bitcoin was around 6 a.m. (UTC) on Friday. According to this data, the best time to open a long position is on Friday of each week around this time. Clearly this is only a market analysis and is not an absolute valid data, but it is a pattern that was found within the data examined by the searched.
Institutional investors take this in consideration
Maybe the volume of exchanges is influencing these results. But the research was focused on the price facts and not on the reasons behind this behavior. Many institutional investors are do taking seriously in consideration the presence of hard patterns into the volatility of bitcoin which make possible to take trading decisions.
It’s clear that those informations are only for traders and not for bitcoin long term holders. Holders are not concerned about short time fluctuations but rather on the increasing value on long term timeframe, like 5-10 years or more.