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Bitcoin bears might be in danger as open interest on the shorts' side is slowly climbing up on a par with the spot buying volume. Such a divergence quite often leads to short squeezes which, in the case of Bitcoin, will most likely lead to a breakthrough and a move toward $100,000.
Spot Cumulative Volume Delta (CVD) is the first thing to notice. On the spot market, this metric displays the total net buying or selling. In this instance, there is a growing spot buy delta, and the Spot CVD is leading with the price. According to this, the recent upswing in Bitcoin prices is being driven by the spot market. Put simply, as more people purchase Bitcoin on the spot market, the price rises.
Perpetual contracts, on the other hand, provide a slightly different narrative. Futures traders may be feeling pessimistic as the Perp CVD is dropping more than the price. Furthermore, there is a rise in perp selling. This implies that while there is buying pressure on the spot market, the futures market is more likely to be selling.
Buying on the spot market appears to be the primary driver of the recent price surge on Bitcoin. A rising Spot CVD in tandem with the price suggests a high level of buying interest.
Alex DovbnyaNegative futures market action: Notwithstanding the futures market (perps) exhibiting bearish sentiment, with a falling Perp CVD and growing selling pressure.
The growing spot buy delta indicates that there may be buying momentum. If you are a spot trader looking to buy or hold Bitcoin, this might be encouraging.
Futures market: The declining Perp CVD suggests bearish sentiment, which may indicate caution for those who trade futures. Selling is the prevailing trend on the futures market, which may cause price adjustments or higher volatility.
Alex Dovbnya
Denys Serhiichuk
