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

Crypto analyst Murphy stated that on November 5, the market experienced significant panic, with the spot active trading volume differential (SVD) severely skewed towards sellers. The selling pressure reached the highest level since the current market trend began 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 active selling pressure of similar scale happens, but prices do not decline significantly, can it indicate 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. The market may need several weeks or even a month or two 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 the chip structure.