The post Exploring the weekend trading market and the novel frontier it presents crypto investors appeared on BitcoinEthereumNews.com.

The crypto market operates around the clock, running 24/7 — an approach that starkly contrasts with the traditional finance (TradFi) sector. In this regard, the last few years have seen the concept of weekend trading emerge as a major phenomenon, offering unique opportunities for investors worldwide.  The significance of weekend trading (in crypto) cannot be overstated because during these periods retail traders have been found to dominate market dynamics, leading to interesting price movements and trading opportunities that differ significantly from weekday patterns. To this point, historical data from 2022 through Q3 2024 has unraveled unique patterns in weekend trading behavior. While price changes have varied modestly between -0.27% to +1.21%, volumes have varied significantly, revealing a more compelling narrative.  For example, even though Saturdays — over the aforementioned time window — have shown negative volume trends (-31.11% in 2022 and -36.60% in 2023), 2024 witnessed a remarkable turnaround with a +10.16% increase. Even more striking was the fact that 2024’s Sunday volumes reached an impressive +86.69% compared to 12.21% in 2023 and 3.86% in 2022.  Crafting the perfect weekend trading arsenal To capitalize on these massive volume swings, investors need to develop successful weekend strategies, the number one factor for which is ‘smart asset selection,’ since certain cryptocurrencies display more pronounced weekend patterns when compared with others.  Traders are best off focusing on assets that have been able to demonstrate consistent liquidity during weekend hours and those that have historically shown higher weekend volatility.  Also, over the weekends, traders are presented with increased volatility. However, this volatility can only be taken advantage of if a disciplined approach to risk management (particularly when employing leverage) is taken.  For instance, traders can combine technical analysis with an understanding of weekend-specific market dynamics (such as thinner order books and lower overall liquidity) to…

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Filed under: News - @ January 18, 2025 8:23 am