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Author: Admin | 2025-04-27
For many years, we have witnessed a weekend effect in Bitcoin from late Friday to late Monday. Moreover, volume tends to drop, and perhaps the lack of volume makes the price go up. Key takeaways:Introduction to the Weekend Effect in BitcoinAnalyzing the weekend effect in Bitcoin trading – Strategy and rulesFactors Contributing to Bitcoin’s Weekend EffectLower trading volume institutional absenceReduced liquidityRetail investor influence increased retail activityDifferent trading patternsMarket manipulation potential low liquidity opportunitiesPump-and-dump risks24/7 trading and international time zones round-the-clock tradingGlobal market participationNews events and sentiment shifts weekend news cyclesSocial media and sentiment impactAlgorithmic and bot trading bot activityArbitrage opportunitiesWeekend price trends: bullish or bearish?Limitations and risks of trading the Weekend EffectIs the Weekend Effect in Bitcoin a reliable trading strategy?Conclusion – Weekend Effect in Bitcoin and cryptoKey takeaways:The “weekend effect” in Bitcoin and other cryptocurrencies refers to a tendency for prices to show distinct upward movements over weekends compared to weekdays. During Saturdays and Sundays, Bitcoin and other crypto assets often experience unique price patterns not typically observed during the rest of the week.In this post, we backtest Bitcoin and Ethereum’s weekend seasonal trading strategy.The seasonal effect seems to work very well for Bitcoin.Click here for a complete list of all Bitcoin and crypto strategies or for IBIT ETF trading strategy.Introduction to the Weekend Effect in BitcoinThe “weekend effect” in Bitcoin (and crypto) refers to the tendency for Bitcoin prices to exhibit distinct positive movements over weekends compared to weekdays. Specifically, Bitcoin and other cryptocurrencies often experience increased volatility, sudden price swings, or unusual price patterns during Saturdays and Sundays.Bitcoin and crypto markets remain open 24/7, allowing trading to continue without interruption. Some observed weekend trends include price drops or spikes late on Fridays, stabilizing on Saturdays, and another potential shift in momentum by Sunday evening or early Monday. However, only backtests, statistics, and data can confirm whether this is the case or not. Reasons for the Bitcoin Weekend Effect may include:Lower Trading Volume: Fewer traders, especially institutional ones, participate over weekends, leading to lower liquidity and increased price sensitivity.Retail Investor Influence: Retail investors, who tend to be more
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