Want to apply dollar cost averaging (DCA) to your bags or buy Bitcoin? Historical data has shown that Wednesdays are the best days to do so for the biggest crypto asset in the world. According to data, Wednesdays have the highest average extension from the 7-day simple moving average (SMA).
The thirteen-year compilation of data starting from 17th August 2010 till 27th November 2023 showed that Wednesdays have an average extension of 1.15 from the 7D SMA. Over time, the 7D SMA has proven to be an essential indicator for dictating short-term price movements.
Good Days to Buy
According to the report, Tuesday is the best day to buy Bitcoin after midweek. The second day of the week has an average extension of 1.05, just 0.1 off Wednesday. Bitcoin added over $1,000 on Tuesday, moving from $37,222 to $38,226.
In that order, Friday has an average extension of 0.9 from the 7D SMA. The sentiments are understandable following the significant movement of Bitcoin during the weekend as it inches towards its weekly closing.
Thursday, Saturday, and Sunday have the same extension from the 7D simple moving average; the three days have an extension slightly above 0.85.
The obvious worst day to buy Bitcoin, according to the report, is Monday; the first day of the week has an extension below 0.65. On 27th November, Bitcoin dropped from $37,677 to as low as $36,850. Bitcoin also fell over 5% on 22nd November, almost confirming why the day seems to be dreaded by investors.
Well, Not For Holders
Although it is best to buy when the market is in fear and sell during greed, long-term holders need not worry much about that. Either on a dreaded Monday or a much-favored Wednesday, the price of Bitcoin would appreciate over time if an investor was patient enough to hold and DCA periodically.
Evidently, MicroStrategy started buying Bitcoin at $69,000 but has an unrealized profit of over $1 billion due to strategic DCA. Being profitable from Bitcoin, like other cryptocurrencies, requires patience.
