$178m liquidated, but the pullback seems to be over

The cryptocurrency market witnessed a sudden dip earlier today, causing a significant increase in the amount of liquidations. But the downtrend seems to be fading away.

According to data provided by CoinGlass, over $178 million have been liquidated from the crypto market over the past 24 hours, marking a 292% increase. Bullish traders, holding long positions, witnessed most of the losses, worth $153 million.

The total open interest in the crypto ecosystem declined by 2% in the past 24 hours and is currently hovering at $55 billion.

Data shows that most of the liquidations were executed in retail traders’ positions. The largest single liquidation, worth $2 million, happened on the OKX exchange.

Ethereum (ETH) is leading the chart with $55 million in liquidations followed by Bitcoin’s (BTC) $35 million. 

The massive liquidations brought a dip to the crypto market. The global cryptocurrency market capitalization declined by 3.6% in the past 24 hours and is sitting at $2.14 trillion, according to data from CoinGecko.

Bitcoin dropped to an intraday low of $58,150 but soon regained momentum to the $59,000 mark.

According to CryptoQuant, the number of Bitcoin addresses depositing into exchanges has dropped to 132,100 — a level last seen in 2016.

The indicator shows that the number of holders selling BTC has significantly decreased. This will, consequently, hint at a declining selling pressure and lower price volatility.

Per a crypto.news report on Sept. 15, over $1.3 billion worth of BTC left centralized exchanges last week. Bitcoin’s on-chain movements and indicators show a potential bullish momentum.

However, macro events could still shift the market direction despite the bullish investor sentiment.