Bitcoin has recorded several selling trends since the December 2021 crash. These sell-offs have been attributed to the drop in prices recorded in the digital asset over the past few months. Naturally, sell trends can be recorded on their magnitude depending on the trading hours open of a particular area. This time around, it seems that macro pressure on the US market has been the culprit.
US traders drive sell-off
The selloff over the past two months has been particularly brutal and has dragged down the values year-on-year. However, it appears that most of the selling is occurring during day trading hours in the United States. This is evident by looking at the year-to-date prices during US trading hours compared to the European year-to-date price. On the contrary, best selling is shown.
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As it sits now, year-over-year values have declined during US trading hours. It is sitting at -32.55%, while its European counterpart is seeing positive year-over-year values of +16%. This suggests that the selloff in the past two months has mainly come from US traders. It is also compared to Asian trading hours which shows more favorable year-to-date prices than the US.
BTC sell-offs intensify during U.S. trading hours | Source: Arcane Research
Mostly, this is evident because of the high correlation between bitcoin and the stock market over the past two months. It is also good to note that US traders are not alone in using the macro market to assess their risk in bitcoin. Since traders in other regions also use equity markets such as the NASDAQ and S&P500 to gauge their risk appetite, they can dump bitcoin even during US trading hours.
bitcoin during trading hours
Recently, it has become clear that a lot of selling is taking place after the US markets opened for business. This is evident from the fact that the price of the digital asset tends to recover in the early hours of the morning, while the European and Asian markets are open. However, once the US markets open for the day, the downside is usually obvious.
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This places bitcoin’s current weak point during a time when US traders are active. As such, these trading hours can present a buying opportunity for interested parties, and even a way to execute quick short-term plays for rapid profits.
BTC recovers ahead of U.S. trading day | Source: BTCUSD on TradingView.com
However, it is important to note that the tide can change at any time. Selling can often stop as dramatically as it begins. Therefore, a change in trend during US hours could affect short-term plays that complete the sell-off during trading hours.
At the time of writing, the digital asset has crossed $30,000 in the early hours of Wednesday. If the selling trend continues, bitcoin price could drop below this level before the end of the day.
Featured image from Bitcoinist, charts from Arcane Research and TradingView.com
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