I heard experts say weekends record the biggest crashes in Bitcoin. And another group of experts claim weekends record the largest Bitcoin gains. Both groups have a loyal following. But who is right? Let’s find out in the CryptoGurru Weekend Bitcoin forecast.
According to Investopedia, “Saturday nights are emerging as a valuable time for traders to buy/sell Bitcoin’
But in a CNBC article entitled ‘Why Cryptocurrency crashes on Weekends’, Writer Kate Dor explains crypto crashes during weekends have been a phenomenon in the Bitcoin market for years.
So what position should a trader take?
I studied a sample size of 100 traders to understand what they think of weekend trading in Bitcoin. One even said market manipulation is at its peak on Fridays and Saturdays.
Apparently, 27 said weekends are great for trading, the price swings are usually high; 18 said Bitcoin crashes and crashes so badly; while 55 said the price volatility is highest during weekends and the price of Bitcoin tends to post high surges or high plummets.
How were we able to finalize that weekends are bullish? Well, 35 of the 55 said high price movements during weekends tend to move upwards in favour of buyers.
This could be true according to ex-Morgan Stanley technical analyst Mark Newton “ The Bitcoin market moves dramatically up and down at weekends when volatility is at its peak level”
Additionally, price data from Coinmarketcap outlines that :
Bitcoin reached its all-time high (ATH) before the first bull market happened on a December Saturday in 2017.
But a June Weekend recorded the largest drop to $6,648.
However, a new report by Cryptogurru highlighted a South Korean Bitcoin exchange hack as the main cause of the Bitcoin drop to $6,648.
This leads us to the third point, price manipulations are common during weekends. According to a U.S. regulation probe, the global cryptocurrency market has a high chance of being subject to price manipulations during weekends.
Onchain data could confirm this:
- The crypto market records lower trading volumes but higher price changes.
- Individual Bitcoin orders are usually large. While the orders are largely few.
- Bitcoin whales, who are usually largely active during weekends, offload or amass a large number of Bitcoin during weekends.
- Such orders might have an overall large negative/positive impact on the market direction.
We reviewed data with sufficient background research behind it, and in subsequent weekend forecasts, we’d love to establish the correlation between Bitcoin weekends and bullishness or bearishness.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
