CryptoQuant’s Spot Taker CVD shows Bitcoin buyers regaining control in deep loss zones, indicating spot-led accumulation and a possible end to the correction.
Summary
- CryptoQuant’s Spot Taker CVD has switched to Taker Buy Dominant mode, demonstrating that aggressive market buying now outweighs aggressive selling on spot exchanges.
- The reversal comes as BTC is in deep short-term loss zones, a phase historically linked to late-stage corrections and improving recovery prospects.
- Strong confirmation will require sustained spot accumulation and BTC will need to reclaim key realized price levels to validate a sustainable trend reversal, the company noted.
Bitcoin (BTC) buyers have returned to the market, according to on-chain data released by CryptoQuant, a cryptocurrency analytics firm.
The Spot Taker Cumulative Volume Delta (CVD), an indicator that measures whether aggressive buyers or sellers dominate market activity, has shifted to Taker Buy Dominant mode, the data showed. This shift suggests that market participants who buy at market prices now outweigh those who sell aggressively.
Bitcoin heading for more volatility
Spot Taker CVD tracks the cumulative imbalance between market purchases and market sales. When the indicator turns positive, it indicates that buyers are absorbing the selling pressure and demand is returning to the order book, according to CryptoQuant.
The benchmark’s shift into positive territory indicates spot-driven accumulation is strengthening and potential reversal momentum is building, the analytics firm said. The change is especially relevant during corrections, where renewed taker buying activity often precedes local trend recoveries, the report said.
Bitcoin recently entered deep short-term holder loss zones, which historically are associated with late-stage corrections, CryptoQuant data showed. A turnaround in Spot Taker CVD during such a phase could strengthen recovery signals as selling to weak hands starts to decline and liquidity improves, the company said.
The return of taker buy dominance represents a change in the dynamics of the microstructure, according to the analysis. After weeks of defensive flows, spot buyers have stepped forward, indicating the market may be emerging from its most aggressive correction period, according to CryptoQuant.
Strong confirmation of the trend, according to the company, would require continued accumulation of spot prices and Bitcoin regaining key realized price metrics.
