In the midst of a rocky start to the month, the cryptocurrency market has struggled to regain its footing, and Bitcoin has been no exception. Over the past week, Bitcoin’s price has made little impact, remaining nearly 20% below its all-time high of $73,737. This has sparked renewed calls for a revival of the premier cryptocurrency’s bull market.
Notably, on-chain observations reveal that Bitcoin has faced significant bearish pressure over the past two years. A recent post by blockchain data firm Glassnode on the X platform highlighted that the Bitcoin spot market has experienced a net sell-side bias during this period. This conclusion is drawn from the Spot Cumulative Volume Delta (CVD) indicator, which measures the net difference between buying and selling trade volumes.
The Spot CVD metric is a crucial tool for investors, providing detailed insights into market sentiment. A positive CVD value typically indicates more buying pressure, while a negative value suggests sellers are in control. According to Glassnode’s latest data, the yearly median CVD value has fluctuated between -$22 million and -$50 million over the past two years, indicating a persistent net sell-side bias where selling volume has consistently overshadowed buying volume.
While the ongoing net sell-side bias might suggest that investors are offloading their Bitcoin rather than accumulating it, this does not necessarily mean a bearish outlook for the market. Instead, it signals a cautious approach by investors and an overall decline in spot demand for BTC. The future trajectory of the Cumulative Volume Delta remains uncertain, but a shift to positive values could indicate a surge in Bitcoin spot market demand, potentially boosting Bitcoin’s price.
As of now, Bitcoin’s price sits slightly above the $59,000 mark, having risen over 2.5% in the past 24 hours. However, this recent uptick is insufficient to counterbalance the coin’s losses over the past week. Data from CoinGecko shows Bitcoin’s price has declined by more than 2% over the week.
