With the booming development of today's digital currency market, Bitcoin has always attracted much attention. For investors, one of the key questions is when is the most valuable and cost-effective time to buy Bitcoin. In this article, we’ll take a deep dive into when is the best time of year to buy Bitcoin and which times are the most cost-effective, revealing the best times to invest in Bitcoin.

First, let’s analyze the various periods of the year to see which time is best for buying Bitcoin.

January is typically a volatile time for Bitcoin prices. At the beginning of the new year, market sentiment fluctuates, and investors are full of expectations for future trends, which may lead to rapid fluctuations in the price of Bitcoin. Sometimes, January can capture price troughs and be a good time to buy. However, you should also pay attention to the risks, as the market is volatile and investment needs to be cautious.

February to April is a relatively stable period for Bitcoin prices. During this period of time, Bitcoin prices usually show a certain stable trend with relatively small fluctuations. For investors who like sound investments, this period may be a good time to buy. Stable prices help avoid some market risks.

May is often a time when Bitcoin prices rise. In May, a new wave of gains is usually ushered in. Market enthusiasm gradually increases and investor confidence increases, which may push the price of Bitcoin upward. Therefore, May is also a good time to buy and take advantage of rising prices.

June to September is a period of high volatility for Bitcoin prices. During this period, market sentiment is unstable and prices fluctuate greatly, so investors need to be cautious. For investors who like to challenge high risks and high returns, this period may be a time to consider buying, but they need to pay attention to market risks.

October to December is the period when Bitcoin prices rise again. During this period, Bitcoin prices usually experience another surge, especially in December, when market enthusiasm reaches its peak and prices may rise rapidly. Therefore, October to December is also a buying time that cannot be ignored.

To sum up, the best time of year to buy Bitcoin depends on your personal investment strategy and risk appetite. Different time periods have their own advantages and disadvantages, and investors should make wise choices based on their own circumstances and market trends.

In addition to the timing factor, there are a few other factors that affect when and how good a buy Bitcoin is.

First, the global economic situation is an important factor. The quality of the global economic situation will directly affect the price trend of digital currencies such as Bitcoin. During global economic downturns, investors tend to move funds to safe-haven assets, and digital currencies such as Bitcoin may benefit. Therefore, paying attention to the global economic situation is crucial to choosing the right time to buy.

Secondly, changes in policies and regulations will also have an impact on the price of Bitcoin. Governments around the world continue to adjust their regulatory policies on digital currencies, which will directly affect the price of Bitcoin. Investors need to always pay attention to changes in policies and regulations in order to seize the opportunity to buy.

In addition, market sentiment and investor confidence are also important factors affecting Bitcoin prices. Fluctuations in market sentiment will directly affect the price fluctuations of digital currencies such as Bitcoin. When market sentiment is low, prices may be suppressed; when investor confidence is high, prices may rise. Therefore, understanding market sentiment and investor confidence is crucial to choosing when to buy.

When choosing the time to buy Bitcoin, investors also need to make reasonable decisions based on their own investment goals and risk tolerance. Investment is risky and needs to be treated with caution, and it is not advisable to blindly follow the trend. It is recommended that investors fully understand the market conditions before buying Bitcoin, formulate a clear investment plan, and control risks to obtain better investment returns.

To sum up, choosing when to buy Bitcoin is a question that requires careful consideration. Investors should choose a buying opportunity that suits them based on market conditions, personal investment goals and risk preferences. Only by making wise choices based on a full understanding of the market conditions can you get better returns on your Bitcoin investment. We hope that the analysis in this article can help investors better grasp the timing of buying Bitcoin and achieve their investment goals.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

There are two important decisive factors in investment, one is target selection, and the other is timing. If you have decided to invest in BTC, investors need to carefully consider when to enter and when to exit.

For example, choosing the entry time is very important. No matter how excellent a currency is, if the purchase price is too expensive and you buy it on the top of a mountain, it will be difficult for you to make money on this currency, and you may even suffer losses. We are deeply impressed by the recent surges in BTC, such as September and October 2017, June and July 2019, and the recent plunges in February 2018 and March 2020, but BTC Are there any rules to follow regarding the entry and exit times corresponding to the sudden rise and fall?

This issue of Feixiao Research analyzes BTC market data from 2018 to the present to find out whether BTC also has a "January effect" similar to the stock market.

1. Is there a pattern to be followed for the monthly rate of return in a year?

By analyzing BTC
Looking at the market rise and fall data for each month in 2018 and 2019, we found that there seems to be a wave of market prices in the second quarter of every year, which is consistent with the concept of market circles that we have previously recognized (rumor has it that capital market projects are all started in February) . For ordinary spot investors, they should seize the spot market situation in the second quarter. The main money-making time of the year is in the second quarter.

2. Is there a pattern similar to the “January Effect” in the stock market?

The January effect of the stock market refers to the fact that in January every year, funds in the market withdraw from the market, resulting in insufficient trading volume, so that the price appears at the lowest point of the year. Buy at the lowest point of the year and wait until the price rises. Sell later. In fact, a similar effect of China's A-shares is the "February effect", which is related to the date of the Chinese Spring Festival.

The currency circle can also refer to similar effects, such as buying during the Spring Festival or the end of each year, holding it until the market starts after the year, and then looking for high points to sell. However, it should be noted that it is not to blindly buy in the entry month, but to use technical means to find low points to buy. For novices, they can use the method of opening a position at the average cost of low points in the first quarter.

3. Which month of the year is most likely to be the lowest point?

The current "January effect" in the currency circle is not the same as the A-share market. It is clearly a "February effect."

But we know that the position must be opened before the second quarter. As for the continuous position building period, we don’t know whether it is 1 month, 3 months or 6 months. We also believe that the actual situation of each trader will also affect how far in advance to open a position. .

The trend is gradually starting to rise from the monthly lows over time. Perhaps February is a good position to open a position, but assuming there is still a possibility of a decline in March, then you must hold it until at least April. It is generally not recommended to hold it until the third quarter. Because after the third quarter, the probability of market decline will increase.

From this point of view, the currency market fluctuations have a certain degree of seasonality, which is a combination of seasonality, trend lines and random white noise.

4. Can seasonal patterns be verified through “quantity”?

Yes, the trading volume and price are highly synchronized, and the trading volume also shows seasonal patterns, and the relationship between volume and price will become more and more significant as time goes by. This also tells us that if the price is low and the volume is significantly below the multi-month volume average, then this may be a position to open a long-term trade.

5. Will the seasonal pattern of the currency circle become stronger?

The answer is yes. In the past, when Bitcoin was first born, the rapid rise in currency prices was the mainstream of the entire circle. However, as the currency prices rose to a certain stage, and Bitcoin became more and more accepted by the public, the transaction volume increased. As the price expands, the slope of the currency price trend will gradually weaken, while seasonality and white noise will gradually increase.

To put it simply, the fluctuations of BTC currency prices in the currency circle will become smaller and smaller, and seasonal capital inflows and outflows will be more influential. This is also a market transition from a niche to a gradually mature market.

6. Basic use of the law of volume and price

Volume and price follow the law of rising and falling at the same time. Once the trading volume increases, the price will most likely rise; if the trading volume drops, the price will most likely fall at the same time.

The divergence between volume and price represents a market reversal. Once the price rises but the trading volume falls, there is a high probability that the market will stop falling and rebound in a short period of time.

After analyzing the spot market pattern of BTC, we will start with futures to see if there is the same market rise and fall pattern.

7. Do futures also have seasonal patterns in volume and price?

Although futures data are currently shorter than spot data, the pattern of futures is more obvious, which is related to the gradual increase in futures trading volume and active trading.

However, it is worth noting that due to the leverage advantage of futures products, they are more suitable for short-term operations. Therefore, if you use the "February effect" to enter the market and hold it for a long time, you will encounter the situation that the contract you hold is facing delivery, and you will not be able to withstand a large price increase after opening a position. Issues such as volatility, cost of holding perpetual contracts, etc. Therefore, it is recommended to use the short-term volume-price relationship in futures instead of the long-term holding strategy of the "February effect".

8. Judging from the current market situation, have you missed the long-term position building point this year?

The current market has reached several highs above 10,000 points after March 12, so the current price is relatively high and it is not appropriate to establish seasonal positions.

From the above analysis, we conclude that it is more appropriate to open a position in the first quarter. After the price reaches a high point in the second quarter, you should gradually reduce your position to make a profit. If you are a long-term position holder, it is not appropriate to reduce your position yet, but you should consider Take profits before exiting.