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Weekend Bitcoin Trading Thoughts: Why Stay on the Sidelines
The liquidity in the market is generally weak during the weekend, which directly leads to fragmented price fluctuations. Large funds tend to keep a low profile over the weekend, resulting in wider trading spreads, and price movements oscillate repeatedly between obvious support and resistance levels.
The really interesting thing is that most of the fluctuations formed over the weekend are mercilessly reversed on Monday - when the real trading volume floods into the market, the Monday Low often redefines the price. Instead of chasing illusory swings over the weekend, I prefer to hold my position. Poor liquidity means asymmetric risk, and sometimes the wisest trading decision during such times is not to trade.