Viewpoint: Bitcoin market selling pressure hit a new high since August on November 5, and the panic sentiment may take several weeks to digest.
19 minutes ago
Crypto analyst Murphy stated in a post that on November 5, the crypto market experienced notable panic, with the Spot Volume Differential (SVD) on exchanges heavily skewed toward sellers. Selling pressure reached its highest level since the start of the current rally in August, even surpassing the active selling pressure triggered by Binance’s security incident on October 30. Murphy pointed out that the intensifying active selling pressure pushed prices further down, but it remains unclear whether buyer absorption capacity has improved. Only when an active selling pressure of the same scale emerges next time without a significant price drop will it signal that buyer order depth may have increased. He argued that the successive short-term shocks from Binance’s "black swan" incident and the sharp U.S. stock market slump have significantly eroded bullish confidence. The market may take weeks or even one to two months to digest the panic, making a short-term direct V-shaped rebound highly unlikely. Going forward, focus should be placed on monitoring changes in investor behavior, market sentiment, and token distribution structure.
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