CVD (Cumulative Volume Delta): definition

Definition

CVD (Cumulative Volume Delta) measures the gap between volume bought at market and volume sold at market, then adds it up over time. A market order is an aggressive order: it consumes order-book liquidity and moves the price. CVD therefore shows who is driving the move.

How it's calculated

For each candle, the delta is: market buy volume − market sell volume. CVD is the sum of these deltas since the start of the period. A +500 BTC delta candle followed by a −200 BTC candle gives a CVD of +300 BTC.

How to read it

• Price up and CVD up: the rally is driven by real buyers, the move is healthy.
• Price up and CVD down: price rises while aggressive sellers dominate. A fragile rally, often pushed by leverage or by passive sellers pulling their orders.
• Price down and CVD up: buyers are absorbing the selling. A possible sign of accumulation, watch for a bounce.
• Price down and CVD down: real selling pressure.

Spot CVD or perp CVD?

Spot CVD reflects buying and selling of the crypto itself, often by investors. Perp CVD (perpetual contracts) mostly reflects leveraged traders. A rally with rising spot CVD is sturdier than one driven only by perp CVD.

Pitfalls to avoid

• Reading CVD alone: always cross-check it with price and open interest.
• Comparing CVD across different exchanges: each one has its own volume.
• Forgetting the timeframe: a divergence on 15 minutes doesn't carry the weight of one on 4 hours.