There are certain groups of traders who cause selling pressure on the market.
An eternity of sales volume occurred in April only during the trading hours of a certain set of traders and investors. Those trading hours are US trading sessionWhich indicates that the main selling pressure on the market is coming from US market participants, while a group of Asian investors pump mostly digital gold.
As data from analysts at Araken Research shows, BTC’s cumulative year-on-year returns fell from 4.22% on April 1 to -32.55% in May during US trading hours.
The entire sell-off since April has happened during US trading hours.
BTC’s cumulative YTD returns during US trading hours fell from 4.22% on April 1st to -32.55% today.
During Euro and Asian trading hours, BTC has seen flat returns since April 1. pic.twitter.com/3vmeenHIGb— Vettel Lunde (@VetleLunde) 6 June 2022
The data indicates that US traders were mostly abandoning their bitcoin holdings, creating huge pressure on the market and becoming the main sell-off driver in April.
Despite the huge sales volume coming from the country, Asian cryptocurrency holders saw no reason to sell off their holdings as extensively as their Western counterpart did. The same rule applies to European traders looking for stable trading session returns.
Although the dynamic may not seem significant, it can give us an indication about the behavior of the market during a trading day. With the US markets opening up, bitcoin and other digital assets are seeing an increase in selling volume, which can be used by retail traders to exit their positions or find better entries.
As for bitcoin’s current position in the market, it is still moving in a consolidation range formed near the $28,000 and $31,000 levels. Unfortunately, BTC was unable to break above the $30,000 level during yesterday’s trading session.
At press time, BTC is trading around $29,560 and has lost almost 6% in value over the past 24 hours of trading. The US market is not yet open and may create further pressure in the coming hours.