Market 
Cash 
The lack of cascading liquidations, the 25 per cent delta skew, and the margin lending ratio all refer to a $56,500 low for Bitcoin.
"Expect the unexpected" should be the first rule of Bitcoin (BTC) trading. There have been five incidences of 20 per cent or higher daily profits in the last year, and also five intraday 18 per cent declines. In reality, instability over the last three months has been comparatively low in contrast to recent highs.
Traders new to Bitcoin, even if multi-million dollar organisational fund managers or retail investors, are frequently spellbound by a 19% modification after a local top. Many people are amazed that the current $13,360 correction from the all-time high of $69,000 on November 10 took place over nine days.
The downhill move did not result in panic-inducing liquidations.
Cryptocurrency traders are notable for high-leverage trading, and almost $600 million worth of long (buy) Bitcoin futures deals were liquidated in just four days. Although this seems to be a decent figure, it signifies less than 2% of the total BTC futures markets.
The absence of a considerable liquidation event even after the drastic price drop is the first indication that the 19 per cent drop down to $56,000 marked a local bottom. If there was increased buyer leverage at work, a sign of a harmful market, open interest would have depicted a sudden change, comparable to the one observed on Sept. 7.
The risk measure in the options markets was stable.
Investors should look at the 25 per cent delta skew to see how concerned professional traders are. By comparing related call (buy) and put (sell) options alongside, this indicator offers a credible perspective into "fear and greed" sentiment.
When the premium for neutral-to-bearish put choices is greater than the premium for comparable-risk call options, this metric will convert positive. This is generally referred to as a "fear" situation. The inverse trend indicates bullishness or "greed."
Values between -7% and 7% are considered neutral, so nothing out of the regular occurred during the recent $56,000 support test. If pro traders and arbitrage traders had identified higher risks of a market collapse, this indicator would have surged above 10%.
Traders on margin are still going long.
Margin trading enables investors to borrow cryptocurrency to exploit their trading position and boost their profits. To buy cryptocurrencies, for example, one can procure Tether (USDT) and increase their access. Bitcoin borrowers, on the other side, can only shorten it as they are wagering on the price drop.
In contrast to futures contracts, the balance of margin longs and shorts is not always balanced.
According to recent data, traders have recently borrowed more USDT, as the ratio increased from 7 on November 10 to the current 13.
In the face of the latest BTC price fall, all of the above indicators demonstrate flexibility. Anything can take place in crypto, as stated previously, data from derivatives indicates that $56,000 was the local bottom.
