Bitcoin hits resistance with $2.9B in longs at risk below $68,000

Bitcoin has rallied approximately 40% from its July low near $57,800, renewing expectations that the cryptocurrency may have established a market bottom after several months of consolidation.

$BTC was trading near $80,200 on Aug. 27. However, the recovery has brought the cryptocurrency back into a major resistance zone that previously preceded a sharp sell-off.

Technical indicators and derivatives-market data suggest the rally could face a significant correction unless Bitcoin breaks decisively above that resistance.

Bitcoin liquidation data highlights downside risk

Bitcoin’s liquidation heatmap shows a larger concentration of leveraged positions below the current market price than above it.

The nearest downside liquidity cluster is located around $77,500. According to CoinGlass, approximately $392.31 million in long positions could be liquidated if $BTC falls into that area.

Liquidation zones represent price levels at which heavily leveraged traders may be forced out of their positions.

Because these clusters contain substantial liquidity, they can attract price action and amplify volatility when reached.

A decline toward $77,500 could therefore trigger forced selling from leveraged long traders, adding momentum to the correction.