PiCK
Bitcoin Spot Buying Regains Upper Hand, but Short-Term Breakout Still Elusive
Summary
- Analysis shows buying pressure is regaining the upper hand in Bitcoin's spot market.
- Over the past three months, aggressive buying pressure in the spot market has outpaced selling pressure, signaling easing sell pressure and improving real demand.
- It is still too early to confirm a short-term upside breakout, however, and Bitcoin could either extend gains or remain in a sideways trend depending on whether buying pressure persists.
Forecast Trend Report by Period
Buying pressure is gradually regaining the upper hand in Bitcoin's spot market, according to a CryptoQuant analysis. Still, analysts say it is too early to call a full trend reversal.
On April 25, CryptoQuant analyst Ray wrote in a CryptoQuant Quicktake note that spot taker cumulative volume delta, or CVD, over the past 90 days is once again showing buy-side dominance.
Taker CVD measures the cumulative difference between market buy and market sell flows. A buy-side advantage indicates aggressive buy orders are exceeding sell orders.
Over the past three months, aggressive buying in the spot market has gradually begun to outpace selling. That points to easing selling pressure and improving underlying demand, Ray wrote.
The move is particularly notable because it appears to be driven by spot demand rather than futures-market volatility.
Even so, Ray added that it is too soon to confirm a short-term upside breakout. If buying pressure persists, it could support a further advance. Otherwise, Bitcoin may continue to trade sideways for now.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
