Recent data indicates a notable shift in Bitcoin trading dynamics, particularly during U.S. hours, where net buying has resumed amidst continued selling pressure from the Asian market. Velo’s session data reveals that while U.S. flows have helped push cumulative returns into positive territory for the week, traders in the Asia-Pacific (APAC) region remain firmly entrenched in negative territory.
Graphs from Velo demonstrate a clear divergence in performance across different trading sessions. The U.S. session, represented by a blue line, experienced a dip in early trading but rebounded significantly around November 24-25, ultimately stabilizing with gains nearing 2% by November 26. This marks a shift towards net buying after a period of lower trader sentiment.
In contrast, the data from European trading sessions suggests a lingering struggle, with cumulative returns still dipping despite a brief recovery mid-week. The purple line in the chart illustrates European performance, which saw a sharp decline on November 21 but managed a slight uptick, landing several percentage points below the neutral axis. Even though Europe is no longer the primary driver of sell pressure, buyers in that market have not yet managed to fully compensate for earlier losses.
The APAC region exhibits the weakest performance, showing a downward trajectory shortly after November 20, with cumulative returns fluctuating between -5% and -7% throughout the week. Ted Pillows, who provided the insights, noted that Asian trading hours have consistently represented the dominant selling window for Bitcoin this year, while U.S. traders are increasingly stepping in to meet demand.
Amid these trading fluctuations, market sentiment has plunged back into “extreme fear,” with the Crypto Fear and Greed Index registering a reading of 20. This is a stark increase from the previous week’s score of 10, coinciding with a temporary spike in Bitcoin prices that touched $80,000. The current mood mirrors the atmosphere observed when Bitcoin approached the $100,000 mark.
The 30-day chart of the Fear and Greed Index highlights a downward trend throughout November, as values dropped from above $110,000 to below $90,000, alongside relatively stable trading volumes. This dynamic indicates a significant decrease in traders’ risk appetite, reinforcing a cautious approach amidst increasing price volatility.
On-chain data from Glassnode’s UTXO Realized Price Distribution identifies critical price levels for Bitcoin, pinpointing $84,570 as a significant support area. Analyst Ali has emphasized this price point as crucial, as a large proportion of coins were last traded around this level, creating a robust base of holders likely to defend against further declines.
Conversely, the market ceiling is marked at approximately $112,340, where many coins exchanged hands during Bitcoin’s previous peaks. This area could attract selling pressure if prices return, as holders may seek to liquidate positions.
Overall, these insights delineate a complex market landscape characterized by contrasting trading behaviors across different regions, shifting sentiments, and key price levels that could dictate future movements in Bitcoin valuations.
