U.Today – Bears may be in danger as open interest on the tiny side is slowly rising on par with spot buying volume. Such divergence quite often leads to tiny valuations, which in the case of Bitcoin will most likely lead to a breakout and a move towards $100,000.
The first thing to pay attention to is Spot Cumulative Volume Delta (CVD). In the cash market, this metric shows the total net amount bought or sold. In this case we have an increasing spot bid delta and Spot CVD is leading in terms of price. In line with this, Bitcoin’s recent price surge is driven by the spot market. Put simply, as more people buy Bitcoin on the spot market, the price increases.
Perpetual contracts, however, present a slightly different narrative. Futures traders may be negative as Perp CVD falls more than the price. Moreover, perp sales are growing. This means that while there is buying pressure in the spot market, there is a greater likelihood of selling in the futures market.
Buying in the spot market appears to be a major factor behind Bitcoin’s recent price surge. The rising CVD Spot ratio combined with the price suggests a high level of purchasing interest.
Negative action in the futures market: despite bearish sentiment in the futures market (perps), with falling CVD Perp and increasing selling pressure.
A rising spot buying delta indicates that purchasing momentum may occur. If you are a spot trader looking to buy or hold Bitcoin, this may be encouraging.
Futures Market: A falling CVD Perp suggests bearish sentiment, which may indicate caution for those trading futures. Selling is the dominant trend in the futures market, which may result in price corrections or greater volatility.
