Bitcoin’s market dynamics are showing notable strength, with spot demand surging as the cumulative volume delta (CVD) hits a new high of 11,500 BTC, the strongest since February. This uptick indicates that buyers are effectively absorbing supply during recent price dips, while derivatives positioning is also expanding, evidenced by a 6.64% rise in aggregated open interest to 257,000 BTC. This suggests fresh participation as Bitcoin consolidates below the $80,000 mark.
The market’s resilience is further underscored by a significant recovery in futures volume to 98,300 BTC, although it remains below levels seen during previous corrections. With $2.1 billion in short positions at risk in the $78,000–$80,000 range, the potential for a short squeeze looms. Additionally, institutional activity is supportive, with a notable decrease in OTC desk balances, signaling reduced immediate supply.
In summary, the combination of increased spot and futures activity, along with consistent ETF inflows, points to a potentially bullish environment for Bitcoin, particularly if liquidity above $80,000 continues to tighten.
Source: cointelegraph.com