#BTC Sideways consolidation, spot CVD rising—it looks like accumulation.
But an increasing CVD could also just be passive buying being absorbed, rather than the main players actively building positions.
Sideways trading itself can mean either accumulation or distribution—the key is whether the price keeps getting repeatedly rejected near the upper end or the lower end of the range.
Drawing an “accumulation” conclusion from just one indicator can make you overlook another possibility: this could be placing bids in order to unload before a sell-off.
But an increasing CVD could also just be passive buying being absorbed, rather than the main players actively building positions.
Sideways trading itself can mean either accumulation or distribution—the key is whether the price keeps getting repeatedly rejected near the upper end or the lower end of the range.
Drawing an “accumulation” conclusion from just one indicator can make you overlook another possibility: this could be placing bids in order to unload before a sell-off.