Something worth flagging in the on-chain data right now: the 90-day cumulative Taker CVD has just flipped decisively into buy-dominant territory. Bitcoin ripped over 20% in a single week in August, reclaiming $80K after bottoming near $57K–62K in May. That's not just a price move — it's a shift in how futures participants are positioning.

Zoom into the chart and the prior stretch tells its own story. During the run to $126K in late 2025, sell-dominant bars kept showing up even as price kept climbing. That means aggressive selling pressure was being absorbed the whole way up. That sell-dominant regime then persisted through the drawdown to the low $60Ks, and only recently did it flip green.

This pattern isn't unfamiliar. Sell dominance near a top usually reflects shorts riding the trend or profit-taking into strength. Buy dominance off a bottom, like now, tends to be a mix of short covering and fresh demand. It lines up with the tape: spot Bitcoin ETFs have pulled in inflows for eight straight days, and if that pace holds, August could be the strongest inflow month since October 2025.

Still, this isn't a green light to get bullish blindly. A flip to buy dominance doesn't guarantee a trend reversal on its own. On-chain analysts are already flagging $83K as the level where real demand actually gets tested, and thicker liquidity here could just as easily mean more volatility, not less. History has plenty of cases where CVD turned green only for price to roll over again shortly after.

Net-net: the shift to buy dominance looks like fuel for this rally, but calling it a confirmed trend reversal is still premature.

This reflects my own views. Not financial advice.

Written by Rich_dady