In a swift turnaround from yesterday’s dip, Bitcoin (BTC) surged to nearly $26,000 during Asian trading hours on Tuesday. This recovery, which saw the BTC climb from $25,210 to $25,973 in a mere 30 minutes (from 3:00 am to 3:30 am UTC), was not driven by any specific news event. Instead, the dynamics within the Bitcoin futures market played a pivotal role. Why Has The Bitcoin Price Bounced Upwards? Renowned analyst Skew provided a technical perspective on the price movement, referring to it as a “textbook short squeeze.” Delving deeper into Skew’s analysis, he pointed out a clear divergence in the Cumulative Volume Delta (CVD) of perpetual contracts (or “perps”) with the actual price. In trading, a divergence between CVD and price can signal a potential reversal. In this context, while sellers were trying to push the price below $25,000, the CVD indicated that buying pressure was mounting. Related Reading: Bitcoin Weekly TD Sequential Buy Setup Appears, But Warns Of Potential Risk Furthermore, the futures market had a high number of short positions relative to the open interest (OI), and the funding r ..
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