As bitcoin struggles to gain traction over $30,000., on-chain data indicates that traders are liquidating their bullish long positions.

According to CoinGlass, $85.68 millions in long positions have been liquidated over the past 24 hours. This is the largest portion of the $116.38million in positions that were’rekt” as the cryptomarket softened.

Long/short Liquidations in Bitcoin (CoinGlass

CoinGlass data suggests that many liquidated traders held high-leveraged trades, and that they had positions in the range of $30,200 to $30,500.

Futures trading is a form of leverage. This means that traders can open large positions by depositing only a small amount, known as a margin. The exchange will provide the remainder of the value. Futures traders are exposed to liquidations, which is the forced closing of long/short position due to margin shortages.

Leverage has slowly crept back into the market since hit a low in April. The greater the leverage on the market, then the more likely it is that price swings will be wild.

CryptoQuant's estimated leverage ratio (CryptoQuant) CryptoQuant’s estimated leverage ratio

CryptoQuant’s estimate leverage ratio has increased from 0.19 to 0.25 at present. The recent filings of bitcoin spot-ETFs by BlackRock, and other traditional financial heavyweights have revived the bullish sentiment on the crypto market.

Edward Moya is a senior market analyst at Oanda, a foreign exchange market maker , and he told CoinDesk earlier that “there’s been a continual focus on U.S. ETFs”. “People will not be as optimistic until they get an update on whether or not we are going to implement that ETF in the States.”

According to CoinDesk, Bitcoin currently trades for $30,080 .

Omkar Godbole is the editor.