glassnode: Strong Selling Pressure Since "1011" Plunge Has Dissipated, Possibly Signaling Trend Reversal

On October 27th, glassnode put forward a market insight stating that since the "1011" crash, the spot and futures CVD (Note: CVD refers to Cumulative Volume Delta, a technical indicator used in trading to measure the net difference between buy (aggressive buying) and sell (aggressive selling) volume over a period of time, which helps traders assess market sentiment, buying and selling pressure, and potential price reversals or divergences.) has first tended towards equilibrium. This indicates that the strong selling pressure of the past few days has dissipated. The funding rate is still below the 0.01% neutral level, suggesting that there are no excessive long positions or bubbles. In fact, the funding rate has dropped sharply several times in the past two weeks, indicating that participants are inclined to be cautious. Various signs indicate that the aggressive selling pressure has actually reached its peak. These extreme emotions usually indicate the opportunity area for a trend reversal.