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Here Is What Traders Are Doing in This Recent Crash Which Never Happened in March, BTC, and ETH in View

Bitcoin (BTC) and the majority of Altcoins are in the red at the time of writing.

Why the analogy between this recent correction and that of March may be essential is to rule out the possibility of a huge market crash as seen in March when millions of contracts were liquidated.

The good news is that a recent analysis of Bitcoin derivatives indicates that the current state of the market is different from that in March. It noted that traders are doing one thing differently now from that of March which is deleveraging and being more calculated in their sentiment.

A crypto analyst who goes incognito as “Z,” noted that unlike afore times, traders were quick to deleverage their positions during a plunge lower to forestall a brutal crash like that seen in March.

Other analysts also noticed the suppression of risk-on appetite in this sector.

Bitcoin’s “25-day skew”

This negative skew indicates that unlike before, traders were likely weighing the chances of a further drop rather than being rigid with an unyielding bullish bias. Data also indicated a gradual deleveraging of positions worth $1-1.5 billion when Bitcoin plunged further.

Another analyst noted that for the second-largest asset Ethereum, a similar scenario played out as seen in a swift reset in the ETH open interest during this recent crash, indicating that now neither longs nor shorts are overleveraged.


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