Remote diagnosis is really tough. Take this for what it is worth -- free advice is worth every penny. 
It looks more like a bacterial infection, to me, perhaps columnaris. Velvet usually doesn't make such bright patches, and is best spotted when viewing the fish from directly in front. The skin just looks like it is slightly dusty, but colors are not altered much.
As I say, take this with a big grain of salt, but use something else to treat it, for I doubt if it is Velvet Disease (Oodinium species).
Wright
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