Bitcoin (BTC) has seen a moderate recovery of 1.55% recently, with its price rising back to $86,259. Despite this, sellers remain dominant in the market, indicated by a significant drop in Bitcoin’s cumulative volume Delta (CVD), which suggests intense selling pressure and typically foreshadows further price declines. Over the past month, Bitcoin’s performance has been poor, with a 17% loss in February alone.
While there has been a temporary rebound in BTC’s price despite the high volume of sell orders, the ongoing bearish sentiment persists, making it challenging for Bitcoin to find solid support. The demand for short positions has surged, putting upward pressure on prices. This increased interest in futures trading indicates that traders are optimistic about Bitcoin’s potential for short-term gains.
The contrasting market dynamics suggest that Bitcoin could see a short-term recovery to around $89,300 if the current conditions hold. However, with sellers still in control, there is a risk that price corrections could bring BTC down to $83,400. Overall, while there are signs of recovery, the market remains heavily influenced by selling sentiment.
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