The cryptocurrency market has had a rough start in August and has been hard to get back on track. Bitcoin is still having problems. The most popular cryptocurrency is still about 20% below its all-time high of $73,737, which has led to more calls for a hopeful comeback.
Glassnode, a blockchain data company, says that Bitcoin has been under constant downward pressure for the past two years. Glassnode pointed out in a recent post on the X platform that the Bitcoin spot market has had a net sell-side bias for a long time.
Bitcoin Faces Selling Pressure
This finding comes from the Spot Cumulative Volume Delta (CVD) indicator, which checks the difference between the amounts of trades for buying and selling.Investors use the Spot CVD as a key indicator to figure out how the market feels.
A positive CVD value means that there is more pressure to buy, while a negative value means that buyers are in charge of the market. According to Glassnode’s data, the annual median CVD value has been between -$22 million and -$50 million over the last two years. This means that in the spot market, selling volume has consistently been higher than buying volume.
This ongoing sell-side bias suggests that buyers have been selling their Bitcoin instead of buying more of it, which is a sign of caution as spot demand falls. But this trend doesn’t necessarily mean that Bitcoin is going down; instead, it shows that buyers are being cautious.
Even though no one knows where the Spot CVD will go in the future, investors should keep a close eye on this measure. If CVD values go up, it could mean that people want Bitcoin again, which could cause its price to go up.
BTC is now worth a little more than $59,000, which is more than 2.5% more than it was 24 hours ago. CoinGecko data shows that BTC price is still down by over 2% every week, even with this latest rise.
