Bitcoin Recovers to $86K Amid Volatility and Selling Pressure
The Most Important Points at a Glance
Bitcoin has recovered to $86,000 after falling 17% in February. Despite this recovery, sellers continue to dominate the market, as reflected in a strongly negative cumulative volume delta (CVD). A possible short squeeze could drive further price gains in the short term.
Bitcoin Under Selling Pressure – CVD at Negative Peak
Bitcoin has experienced one of its worst performances in recent years over the past month. The price dropped by 17%, reaching a four-month low. However, BTC has now recovered to $86,259.
Despite this recovery, selling pressure remains high. The cumulative volume delta (CVD), which measures the ratio of buy to sell volume, has reached its most negative value to date. This means that more sell orders are being executed than buy orders. Such a pattern often indicates continued market weakness, as sellers continue to dominate.
Short Squeeze as a Possible Trigger for the Recovery
Although selling pressure remains high, a short squeeze could be responsible for the recent recovery. A short squeeze occurs when many traders bet on falling prices but are suddenly forced to close their positions due to rising prices. This creates increased demand, which pushes the price up in the short term.
The demand for Bitcoin futures has increased, as reflected in a positive taker buy-sell ratio. Additionally, the futures market premium shows that traders are willing to pay a premium to hold their positions. This suggests that the futures market is currently more bullish than the spot market.
What’s Next for Bitcoin?
If the short squeeze continues, Bitcoin could rise to $89,300 in the short term. However, if selling pressure increases again and market sentiment shifts, BTC could fall back to $83,400. The key factor will be whether buyers remain strong enough to counteract the selling pressure.
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Our Assessment
Bitcoin is currently showing a short-term recovery, but the market remains dominated by sellers. The negative trend in CVD suggests that many investors are still selling off their BTC. A short squeeze could drive prices higher in the short term, but without sustained buying power, the risk of another decline remains. Those investing in Bitcoin should closely monitor market movements and prepare for potential volatility.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $91,849.00 |
| 24h % | 6.78 % |
| 7d % | -3.87 % |
| 30d % | -9.95 % |
| 60d % | -4.32 % |
| 1y % | 49.00 % |
| Market Cap | $1,826,095,505,433.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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