Bitcoin (BTC) showed its strength on March 22 with a gain of 5% and tested the resistance of $ 43,000. The move led to the settlement of more than $ 150 million in mortgaged short positions that had focused on price cuts using futures contracts.

Some Twitter analysts attribute the price increase to Do Kwon, co-founder of the Terra blockchain protocol. During a recent conversation on Twitter Spaces with analyst Udi Wertheimer, Kwon revealed his plans to support stablecoin TerraUSD with Bitcoin.

“The current block we have to buy Bitcoin in is around $ 3 billion, and it will be added to that,” said the Terra co-founder, causing market panic on March 21, when some observers put $ 125 million into a Tether ( USDT). ) deal. Kwon.

Margin traders are still long
Margin trading allows investors to borrow cryptocurrencies to take advantage of their trading position and increase profits. For example, you can buy cryptocurrency by borrowing Tether and increasing your exposure.

On the other hand, bitcoin borrowers can only sell the cryptocurrency because they are betting on a fall in price. Unlike futures contracts, the balance between long positions and marginal positions does not always match.

OKEx USDT / BTC margin lending ratio. Source: OKEx
The chart above shows that traders have borrowed more BTC lately, and the ratio has fallen from March 15 to March 20 to currently 7.5. While the data remains bullish as the index favors stable foreign currency loans, it reached its lowest level since March 9. Given that cryptocurrency traders are generally positive, margin lending ratios of less than 3 are considered unfavorable. So the current level is still positive, but less confident than it was two days ago.

The options markets have not changed recently
Today, it is quite difficult to determine the trend in the market. However, a skewed delta of 25% is a clear sign as arbitrage firms and market makers raise prices for increased or reduced protection. A delta deviation of 25% compares similar buy (buy) and sell (sell) alternatives. The meter will be positive when the fear prevails because the premium for defensive sales is higher than the corresponding risk.

The skew indicator will rise above 8% if traders fear a crash in the bitcoin price. On the other hand, generalized excitation reflects a negative 8% asymmetry.

30-day bitcoin options show 25% delta deviation: Source:
As shown above, we went out of 8% “fear” mode on March 9th and have been in neutral territory ever since. However, Tuesday’s 5% rally was not enough to make options a neutral bullish territory.

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Despite the non-positive Bitcoin options index, these arbitrage desks and marketers will be forced to reverse their bearish positions when the price breaks $ 45,000 and reverses the current trend.

The OKX margin lender showed that professional traders cut their bullish bets after the 10-day BTC price rose by 13%, so the derivative data is somewhat bearish. For this reason, it seems too optimistic to anticipate a pumping over $ 43,000 at the moment.

Source: CoinTelegraph