Bears in bitcoin may be in jeopardy since short-side open interest is gradually increasing in line with spot purchasing volume. Short squeezes are frequently the result of such divergences, and in the case of Bitcoin, these will probably result in a breakthrough and a rise towards $100,000.
First, observe the spot Cumulative Volume Delta (CVD). This measure shows the total net purchasing or selling on the spot market. The spot CVD is leading the price in this case, and the spot buy delta is increasing. This suggests that the spot market is the main driver of the current increase in Bitcoin prices. In other words, the price of Bitcoin increases as more individuals buy it on the spot market.
Conversely, perpetual contracts offer a marginally different story. Given that the Perp CVD is down more than the price, futures traders could be feeling gloomy. In addition, perp selling is increasing. This suggests that the futures market is more likely to be selling even while there is buying pressure in the spot market.
The current increase in the price of Bitcoin looks to be mostly the result of buying on the spot market. When the price and Spot CVD rise together, it indicates strong purchasing demand.
Negative futures market action: Despite the bearish mood displayed by the futures market (perps), there is increasing selling pressure and a declining Perp CVD.
There could be purchasing momentum based on the increasing spot buy delta. This might be positive if you are a spot trader wanting to purchase or keep Bitcoin.
Futures market: The decreasing Perp CVD points to a pessimistic mood, which can advise futures traders to exercise care. On the futures market, selling is the dominant trend, which might lead to price modifications or increased volatility.
