Viewpoint: On November 5, the selling pressure in the Bitcoin market reached a new high since August, and the panic sentiment may take weeks to digest

Cryptocurrency analyst Murphy stated that on November 5, there was a noticeable panic in the market, with the spot active trading volume differential (SVD) on trading platforms severely skewed towards sellers. The selling pressure reached the highest level since the start of this round of market trends in August, even surpassing the active selling pressure triggered by the Binance security incident on October 30.

Murphy pointed out that the continuously increasing active selling pressure has driven prices further down, but it is still not possible to determine whether the buying capacity has strengthened. Only when the next occurrence of a similar scale of active selling pressure does not lead to a significant price drop can it be indicated that the depth of buyer orders may have improved. He believes that the Binance black swan event and the sharp decline in U.S. stocks have consecutively impacted the market in the short term, significantly undermining bullish confidence. It may take several weeks or even a month or two for the market to digest the panic sentiment, and the probability of a direct V-shaped rebound in the short term is low. Moving forward, attention should be focused on investor behavior, market sentiment, and changes in chip structure.