Tiger Brother’s Exclusive Morning Share | Why does crypto keep rallying in the early hours of the morning in Asia?
It happened again last night! After most people in Asia had gone to bed, crypto prices rallied once more.
Tiger Brother has looked into this phenomenon before.
Asia has the world’s largest crypto-trading community. Based on the trading-volume measure used in previous research, the Asian market is nearly three times the size of North America’s.
When large numbers of Asian traders go to sleep, market activity declines and order books thin out. That also lowers the amount of capital needed to move prices.
That’s why crypto can often seem as still as a pool of water during the day in Asia, yet become prone to sharp swings late at night—especially after midnight.
Large institutions make extensive use of quantitative and AI-assisted trading models. They don’t need to coordinate with one another, but they monitor similar underlying factors, such as liquidity, trading volume, and order-book depth. As a result, their behavior may converge within the same time window.
It’s like people naturally putting on more clothes when it gets cold—no need to arrange it in advance.
But keep this in mind: a rally during a low-liquidity period does not mean real buying pressure is getting stronger, nor does it mean the trend has reversed!
There’s another important pattern:
The first month after each bull run ends is often the period with the most short-term activity and the most rebounds—and it’s also when traders are most likely to get trapped.
As the MACD shifts from strong to weak, prices seesaw and technical rebounds keep appearing, making it easy to misread the trend.
As the MACD weakens further and downward momentum plays out, the market usually gradually enters a low-volume, slow-decline phase, and short-term opportunities become scarcer.
We’re currently in this trap-prone phase!
Although prices have already fallen for a while, the market is still enthusiastically discussing support levels, breakdowns, and buying the dip.
As long as most people still believe there’s strong support below, we’re still a long way from a true bear-market bottom.
We’re not at the top anymore, but we’re still above the halfway point.
It happened again last night! After most people in Asia had gone to bed, crypto prices rallied once more.
Tiger Brother has looked into this phenomenon before.
Asia has the world’s largest crypto-trading community. Based on the trading-volume measure used in previous research, the Asian market is nearly three times the size of North America’s.
When large numbers of Asian traders go to sleep, market activity declines and order books thin out. That also lowers the amount of capital needed to move prices.
That’s why crypto can often seem as still as a pool of water during the day in Asia, yet become prone to sharp swings late at night—especially after midnight.
Large institutions make extensive use of quantitative and AI-assisted trading models. They don’t need to coordinate with one another, but they monitor similar underlying factors, such as liquidity, trading volume, and order-book depth. As a result, their behavior may converge within the same time window.
It’s like people naturally putting on more clothes when it gets cold—no need to arrange it in advance.
But keep this in mind: a rally during a low-liquidity period does not mean real buying pressure is getting stronger, nor does it mean the trend has reversed!
There’s another important pattern:
The first month after each bull run ends is often the period with the most short-term activity and the most rebounds—and it’s also when traders are most likely to get trapped.
As the MACD shifts from strong to weak, prices seesaw and technical rebounds keep appearing, making it easy to misread the trend.
As the MACD weakens further and downward momentum plays out, the market usually gradually enters a low-volume, slow-decline phase, and short-term opportunities become scarcer.
We’re currently in this trap-prone phase!
Although prices have already fallen for a while, the market is still enthusiastically discussing support levels, breakdowns, and buying the dip.
As long as most people still believe there’s strong support below, we’re still a long way from a true bear-market bottom.
We’re not at the top anymore, but we’re still above the halfway point.
