Bitcoin is currently showing two new bullish signals, with increasing spot demand and a breakout of the bullish flag indicating further upside. Comprehensive charts reveal that buyers are still supporting this trend, as traders watch to see if momentum can continue pushing towards the next key target.
Spot Demand Strengthens, Futures Traders Turn Positive
The chart tracks the cumulative volume delta (CVD) between coin-based futures and the spot market. CVD measures the difference between aggressive buying and selling. When this indicator rises, it indicates that the frequency of market orders from buyers is higher than that of sellers.
In the chart, both the futures and spot CVD are trending upwards as Bitcoin rises within the intraday timeframe. The futures CVD is steadily increasing, indicating that perpetual futures traders are opening more long positions as prices continue to rise.
Meanwhile, the sharp rise in spot CVD suggests accumulation in the direct market. Spot demand typically holds more significance in market structure as it reflects real purchasing behavior rather than leveraged trading activity.
Ted Pillows points out that the interaction between these two forces is crucial. Positive futures positions may accelerate price volatility, but the rebound can only remain stable if spot buyers continue to absorb supply.
If spot demand weakens while leveraged long positions continue to increase, the market may face a risk of rapid liquidation. However, current charts indicate that the rise in spot accumulation and the expansion of derivatives activity are supporting Bitcoin's latest surge.
Bitcoin Bullish Flag Breakout Points to Possible CME Gap
According to analysis shared by James Easton on the X platform, Bitcoin has broken out of a bullish flag on the four-hour chart. The chart shows that the price has broken above a descending consolidation structure formed after a previous rise. This breakout signal is part of a continuing pattern associated with the restoration of bullish momentum.
Bullish flags typically form after a significant price increase, pausing and consolidating within a downward-sloping channel. In this case, the structure lasted several trading days before Bitcoin broke above the upper trend line. This breakout also occurred near a level where prices had previously been rejected, confirming a change in market structure.
The chart highlights this resistance breakout as a key technical development. Once the price breaks above this level, the structure shifts from consolidation to continuation. Traders often pay attention to this type of breakout as it can trigger subsequent buying, turning short-term resistance into support.
James Easton also pointed out the CME futures gap in the chart. CME gaps occur when significant volatility happens while Bitcoin is closed on the Chicago Mercantile Exchange futures market, leaving a price gap between two trading sessions. Historically, these gaps tend to attract market attention as prices often retest these areas.
With the resolution of the flag structure and the breakout of resistance, the market's focus will shift to subsequent price movements.