Bitcoin fell 5% today, triggering more than $192 million in long liquidations on cryptocurrency exchange Bybit.
Bitcoin has plunged by about 5% in the past 24 hours, causing about 10,000 BTC of open interest to be liquidated in Bybit’s BTC/USDT market.
In just four hours, about $192.9 million worth of long positions were wiped out, prompting liquidation heatmap provider CoinGlass to urge traders to reduce leverage amid heightened market volatility.
As of writing, total liquidations on Bybit have dropped to $1.42 million over the past four hours. Binance, the largest cryptocurrency exchange by volume, has seen an even larger liquidation event, with $4.06 million worth of positions closed over the same time frame.
Strong selling pressure
It is worth noting that the latest data shows that the cumulative volume increment (CVD) indicator indicates that sellers have an absolute dominant position in this market trend.
It is important to note that CVD, which measures the difference in buy and sell volume, has fallen sharply to around 10,211, which shows the presence of strong selling pressure. This indicator confirms the liquidation of long positions as the number of sell orders far exceeds the number of buy orders. In addition, the total spot CVD has fallen sharply to around 2,737, further proving the strong selling pressure in the spot market.
The funding rate also reflects this bearish sentiment, at a slightly negative 0.0003. This suggests that short sellers are currently paying long traders to maintain their positions, which typically occurs in a bearish market where short positions dominate.
Liquidation events on Ethereum
Similar liquidations were seen in Ethereum markets, with ETH down about 10%. Across the broader cryptocurrency market, 87,405 traders were liquidated, totaling $318.46 million, according to Lookonchain data.
In one of the most significant liquidations, a whale lost $12.67 million on a long ETH/BTC position. Another whale lost $12.6 million on a long BTC position.
Will there be a large number of liquidations this month?
Further data from CryptoQuant on August 12 showed that although the cryptocurrency has begun to stabilize, the Ethereum futures market has seen significant liquidation events. These liquidations hit the highest levels since November 2022, indicating a sharp sell-off.
As a result, the futures market has experienced a reset, and as leveraged positions are liquidated, the market may stabilize. Historically, such events have led to temporary market recoveries, and renewed investor interest may drive future price action.
