Bitcoin Market Facing A Persistent Net Sell-Side Bias, Glassnode Reveals
17 August 2024 - 11:00PM
NEWSBTC
Following a tumultuous start to the month, the cryptocurrency
market has yet to shake off the early August blues. The story has
not been very much different for the price of Bitcoin, which
struggled to make an impact in the past week. With BTC’s price
almost 20% adrift of its all-time high of $73.737, there have been
increased calls for the premier cryptocurrency to return to the
bull market. Interestingly, a recent on-chain observation shows
that Bitcoin has witnessed substantial bearish pressure in the past
two years. Bitcoin Spot CVD Persists In The Negative — What Does
This Mean? In a recent post on the X platform, blockchain data
company Glassnode revealed that the Bitcoin spot market has been
experiencing a net-sell side bias over the past two years. This
on-chain observation is based on the Spot Cumulative Volume Delta
(CVD) indicator, which measures the net difference between buying
and selling trade volumes. Related Reading: MATIC Set For
Rebranding In Early September: Will Polygon Prices Recover After
Sinking 65%? The Spot CVD metric is used by investors to assess the
current market sentiment. It offers detailed insight into whether
the bulls or bears are the dominant market participants. Typically,
a positive Cumulative Volume Delta value implies more buying
pressure in the market, while a negative value suggests that the
sellers are in control. According to the latest data from
Glassnode, the yearly median CVD value has been bouncing between
-$22 million and -$50 million over the past two years. This trend
suggests a net sell-side bias, with selling volume overshadowing
buying volume in the spot market for some time now. While the
persistence of a net-sell side bias suggests investors offloading
their coins rather than accumulating, it does not necessarily imply
a bearish condition for the Bitcoin market. It rather spotlights a
cautious approach by the investors, with an overall decline in spot
demand of BTC. Although it is difficult to say how the spot
Cumulative Volume Delta will shift over the coming months, the
metric is one that investors should look out for. This is
especially relevant because a return of CVD to positive values
could signal an increase in Bitcoin spot market demand, which could
be favorable for the Bitcoin price. BTC Price At A Glance As of
this writing, the price of Bitcoin is slightly above the $59,000
mark, having increased by more than 2.5% in the past 24 hours. This
recent momentum, though, is not enough to wipe off the coin’s loss
on the weekly timeframe. According to data from CoinGecko, the
Bitcoin price is down by more than 2% in the past week. Related
Reading: Cardano Sees Massive 150% Volume Surge, Yet ADA Price
Stalls With 4% Decline Featured image from iStock, chart from
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