Bitcoin’s price is now just above the 7,000 level as a gloomy sentiment looms across the broader cryptocurrency market. While hype over the next BTC halving is gradually building as we wrap up 2019, the seasonal pattern shows that BTC markets might be relatively calm in Q1, before entering a stronger Q2. Meanwhile, BTC markets also have shown a constant higher trade volume during European trading hours.
How can day traders utilize these periods to minimize liquidity risk?
In the traditional world of investing, seasonal patterns are well known in different asset classes. For example, the US equity markets usually have better performance from November to April, and some weaker performance typically happens in the May-October period. “Sell in May and go away” would be an excellent example of that.
Even though markets will not repeat the same pattern every year, this seasonal pattern has been proven valid and adopted by many market participants. Read More...