Bitcoin has come a long way from merely being a financial experiment to becoming an important store of value. Currently sitting at a six-figure valuation, the flagship cryptocurrency has amassed a horde of investors who actively profit from its directional movements.
A positive and rising value of the metric usually means that the futures market is dominated by the buyers (Taker Buy Dominant). On the other hand, when the indicator is negative, it means that the futures market is being dominated by the short traders (Taker Sell Dominant).
In the post on X, Maartunn pointed out that the current 90-day CVD is flat, which indicates a balance between bullish and bearish forces in the market. While the Bitcoin price might have shown good signs of recovery, this piece of on-chain data suggests that the market leader might return to a consolidation range.
According to data from Alphractal, the Fear and Greed Index is at 65, which is still far from the +90 levels observed in November and December 2024. This balance between the buyers and sellers could suggest that the market could be awaiting a catalyst, like macro news or on-chain developments, to get a breakout to either side of the market.
Due to the current uncertainty, traders are advised to tread with caution in the market. As of press time, Bitcoin is valued at about $107,143, with the cryptocurrency losing approximately 0.11% in the past 24 hours.
