Overleveraged crypto traders were liquidated out of nearly $2 billion in one of the year’s largest market flush-outs on Monday. More than 370,000 traders have been liquidated to the tune of $1.8 billion over the past 24 hours, with positions in Ether and Bitcoin hit the hardest.

The liquidations came as the crypto market capitalization tanked by more than $150 billion, falling to a two-week low of $3.95 trillion. Bitcoin fell below $112,000 on Coinbase and Ether fell below $4,150, marking its most significant pullback since mid-August.

Real Vision founder Raoul Pal mentioned that the same scenario repeats in the crypto market, with leveraged long positions getting liquidated before a breakout occurs. This recent event marked the largest long liquidation event of the year, with similar events happening in late February, early April, and early August.

Researcher “Bull Theory” attributed the massive liquidation event to an “excessive imbalance” of altcoin leverage compared to Bitcoin. Ether saw over $500 million in liquidations, more than double those for long Bitcoin positions. The market reset was seen as an adjustment rather than a shift in the long-term bull run.

IG market analyst Tony Sycamore suggested a potential dip back to the $105/100k support zone for Bitcoin. The correction since the all-time high has only been around 9.5%, which is shallow compared to previous bull market pullbacks. Bitcoin has historically performed better in ‘Uptober’ months, despite falls in September.

Bitcoin remains up around 4% so far this month, despite the recent pullback. Analysts believe that a correction back to the support zone could set up a buying opportunity for a run up into year-end. The market needs time to correct its gains and work off overbought readings before potentially reaching new highs.

Read more at Cointelegraph: Crypto Traders Flushed For $1.8B In Year’s Biggest Long Liquidation Event