Pre-sleep review found that the second door drawn yesterday was very abnormal in various data! The market sentiment is quite bullish~ Let me explain in detail:

1. The abnormality was first noticed by looking at the total delta chart.. (Chart 1) The second door yesterday didn’t seem to drop very sharply, yet the total short delta hit a peak of -1.2B??

Within this -1.2B short delta, some of it was during the rise of the second door, where the price continued upward despite heavy selling pressure (but the price still kept going up). Another part was during the drop from 92.2k to 91k.. with a small decline.. and large absorption..

This -1.2B short delta mainly came from contract selling pressure... which is the second point below.

2. Today, the second door was entirely driven by spot.. Throughout the rise, contracts were under very strong active selling pressure, with CVD dropping sharply.. Spot and contract CVD are seriously diverging (Chart 2).

Despite such heavy contract selling pressure, under spot buying, the price still pushed upward..
Huge contract sell orders were absorbed..

3. Since the contract CVD was abnormal, let’s look at OI as well, which also appeared very abnormal! (Chart 3) OI was decreasing throughout the rise and fall of the second door..

This means that during the upward movement, contract longs were continuously closing longs, and the opposing side was short liquidations..

Is this a liquidity squeeze driven by a short squeeze? But the price isn’t at a typical position that looks like a short squeeze, so it’s very unusual..

It’s like in a normal fluctuation range, both longs and shorts mutually reduced leverage significantly.. OI returned to levels around New Year’s..
Abnormal!

Continuing the analysis, the main spot buying came from Coinbase. Since the rise started at the second door, Coinbase’s spot CVD increased by over 1000+ — which is very rare considering Coinbase’s liquidity. (Usually, CB CVD changes by a few hundred in a day)

This indicates that US funds entered heavily yesterday...

Combined with this week’s CLARITY ACT voting... Could it be that US funds are already planning to enter early?

4. Meanwhile, funding rates decreased, and Coinbase’s negative premium narrowed..

5. Both spot and contracts showed demand orders in the 90~90.8k range..

6. Yesterday’s POC broke out of the past 4 days’ 90k range, further rising to the 91.5k range...

In summary, the data is very abnormal, I’ve rarely seen such movements...

But personally, I still lean towards bullishness..

This wave might challenge the resistance zone above again..

Be cautious today with short positions...

What do you think? Do you have a different view..?