Bitcoin’s Journey as a Store of Value

Bitcoin has evolved from a financial experiment to a significant store of value. Currently valued in six figures, it attracts numerous investors seeking to profit from its price movements.

Despite its growth, Bitcoin’s price is still impacted by investor emotions—frenzy, fear, and caution. On-chain data suggests Bitcoin may enter a cautious phase, detailed below.

90-Day CVD Shifts to Neutral After Prolonged Trends

In a June 27 post on X, analyst Maartunn highlighted a significant shift in a key metric, the 90-day Futures Taker Cumulative Volume Delta (CVD). This metric tracks net buying or selling pressure in BTC’s futures market.

A positive CVD indicates a buyer-dominated market, while a negative value signals a dominance of short traders. Currently, the 90-day CVD is flat, indicating equilibrium between bullish and bearish market forces. Despite Bitcoin’s recent recovery, this data suggests potential consolidation.

Bitcoin Fear and Greed Index at Neutral Levels

In another June 27 post, crypto analytics firm Alphractal provided an insight based on the Bitcoin: Fear and Greed Index Heatmap, which measures market sentiment over time. The index ranges from 0 to 100, with 0-24 indicating extreme fear, 25-49 fear, and 50 reflecting neutrality. Above 50 suggests greed, with values of 75-100 indicating extreme greed.

Currently, the Fear and Greed Index is at 65, far from the +90 levels seen in late 2024. This balance of buyers and sellers implies the market may need new catalysts, such as macro news or on-chain developments, for a breakout.

Given the existing uncertainty, traders are advised to be cautious. As of the latest update, Bitcoin is valued at approximately $107,143, down about 0.11% in the past 24 hours.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView