🧠 What if price is moving up, but buying pressure is actually weakening?
This is where CVD Divergence becomes interesting. 👀
Cumulative Volume Delta (CVD) tracks the difference between aggressive buying and aggressive selling over time.
Now, imagine this scenario:
📈 Price makes a new high.
📉 But CVD fails to make a new high.
What could this mean?
It suggests that price is moving higher without the same level of net aggressive buying seen during the previous move.
One possible explanation is that passive sellers are absorbing aggressive buy orders.
But here's the catch:
A divergence doesn't automatically mean a reversal is coming.
Sometimes, the market reverses. Other times, buyers regain control and price continues higher.
That's why CVD is more useful when combined with price structure, key levels, and other order-flow data.
The real question isn't simply whether buyers are aggressive.
It's this:
How much price movement are those buyers actually getting for their effort? 👀
Because in the market, aggressive buying and upward price movement aren't always the same thing.
$MOVR $QNT $PUMP
#CryptoAnalysis #EarningsSeason #BitMineETHHoldingsTop6Million
This is where CVD Divergence becomes interesting. 👀
Cumulative Volume Delta (CVD) tracks the difference between aggressive buying and aggressive selling over time.
Now, imagine this scenario:
📈 Price makes a new high.
📉 But CVD fails to make a new high.
What could this mean?
It suggests that price is moving higher without the same level of net aggressive buying seen during the previous move.
One possible explanation is that passive sellers are absorbing aggressive buy orders.
But here's the catch:
A divergence doesn't automatically mean a reversal is coming.
Sometimes, the market reverses. Other times, buyers regain control and price continues higher.
That's why CVD is more useful when combined with price structure, key levels, and other order-flow data.
The real question isn't simply whether buyers are aggressive.
It's this:
How much price movement are those buyers actually getting for their effort? 👀
Because in the market, aggressive buying and upward price movement aren't always the same thing.
$MOVR $QNT $PUMP
#CryptoAnalysis #EarningsSeason #BitMineETHHoldingsTop6Million
