Observe the horny longs from 23k; this is normal as price goes up, until spot diverges. The blue CVD is spot and currently selling into perps. If this continues, the perps will get absorbed, price will reverse against them, and the dominoes fall (ty @smolcomfy for chart)
Itβs a win win. Buy with perps to hedge against upside risk while creating liquidity to sell your spot into
Youβll often notice this pattern on lower timeframes, and sometimes on medium/high timeframes (eg 30-69k rally to an extent). What typically happens at the highlighted is perps begin speculating/hedging while spot uses this as a chance to distribute thru this added liquidity
Lmeow and it begins
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