Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money
Bitcoin price pumps and dips anytime of the day and not only overnight. I feel that your timezone is why you feel that it's always in the middle hours of the night. However, volatility is the nature of cryptocurrency and fundamental analysis and investors sentiment can come up anytime and thay will affect the market.
Forget about what's happening in the market because they are irresistible and keep stacking more sats for the future without planning to time the market.