Bitcoin Price Risks Bear Trap as $2.9B Liquidation Zone Looms

Bitcoin's price is at risk of triggering a bear trap if it breaks below the $68,000 to $68,300 region. This area marks the convergence of the cryptocurrency's 100-day and 50-day exponential moving averages (EMAs). A stronger selloff could push BTC toward this range.

The bearish setup would weaken if Bitcoin decisively closes above its resistance area at $82,500. Such a breakout would turn the former capitulation zone into potential support and increase the likelihood that the July bottom was sustainable.

Bitcoin's liquidation heatmap shows significantly more leveraged positions at risk below the current price than above it. This suggests that there are more potential sellers waiting to enter the market if BTC falls further.