Bitcoin price slipped below $77,000 as traders reduced risk ahead of a key U.S. Senate vote on the CLARITY Act. Short-term technical indicators have also weakened, putting the $75,500–$76,000 support zone firmly in focus.
At the time of analysis, Bitcoin was trading near $77,059, down around 1.45% on the day after falling as low as $76,704.
The decline comes as BTC continues to trade below its 50-week exponential moving average, while liquidity clusters near $76,000 and $75,000 could increase volatility if sellers maintain control.
Bitcoin price falls below $77,000
Bitcoin traded around $77,059 after opening the session near $78,189.
BTC climbed as high as approximately $78,250 before selling pressure pushed the cryptocurrency to an intraday low near $76,704.
The latest decline followed another unsuccessful attempt to hold the $79,000 region.
Bitcoin has been producing lower highs since reaching roughly $82,000 in early September, suggesting buyers have struggled to regain stronger upside momentum.
At the same time, the area between approximately $76,500 and $77,000 has repeatedly attracted buying interest.
That makes the current region an important battleground between buyers attempting to defend support and sellers looking for another move lower.
Bitcoin momentum weakens on the 4-hour chart
The 4-hour technical setup shows weakening short-term momentum.
Bitcoin has fallen below the Bollinger Band midpoint near $77,474.
The lower Bollinger Band sits around $76,359, while the upper band stands near $78,589.
With BTC trading closer to the lower band, sellers currently have greater control over the short-term range.
Bitcoin’s 4-hour Relative Strength Index also dropped to approximately 44.20.
Its signal line stood near 48.76.
An RSI reading below 50 generally indicates that bullish momentum is weakening, although Bitcoin has not yet entered oversold territory.
This means sellers still have room to push the market lower if buyers fail to defend nearby support.
CLARITY Act vote adds uncertainty to Bitcoin price
Political uncertainty in the United States is contributing to cautious market sentiment.
The U.S. Senate was preparing for a cloture vote on the Digital Asset Market Clarity Act, commonly known as the CLARITY Act.
The procedural vote would require 60 votes to move the legislation toward debate.
The bill is closely watched by cryptocurrency investors because it seeks to establish clearer rules for how federal agencies regulate digital assets.
Reports of a revised draft had initially improved market sentiment.
However, uncertainty over whether the bill could secure enough Senate support later reduced that optimism.
Failure to advance the legislation could delay broader U.S. crypto market-structure reforms and extend regulatory uncertainty for the industry.
Federal Reserve policy remains another risk
Bitcoin is also facing pressure from the broader macroeconomic environment.
Hotter inflation data and rising oil prices have strengthened concerns that the Federal Reserve could maintain restrictive monetary policy.
Higher interest rates can create challenges for Bitcoin and other risk assets.
When Treasury yields rise, investors can earn more attractive returns from traditional yield-bearing assets, potentially reducing demand for speculative investments such as cryptocurrencies.
The next Federal Reserve decision could therefore play an important role in determining whether Bitcoin holds its current support or extends the correction.
Bitcoin liquidity builds near $76,000
Bitcoin’s liquidation heatmap highlights several important areas that could influence the next move.
One of the strongest liquidity concentrations below the market appears around $76,000.
Additional liquidity is positioned near $75,000.
This makes the broader $75,000–$76,000 region particularly important if Bitcoin continues moving lower.
A break into these areas could trigger leveraged long liquidations, potentially accelerating selling pressure.
However, substantial liquidity also sits above the current market price.
The nearest major upside concentration appears around $78,300 to $78,500.
Another large cluster sits close to $80,000.
These levels could attract Bitcoin during a recovery, although they could also act as resistance as traders close losing positions.
Bitcoin needs to reclaim $78,600
For the short-term technical outlook to improve, Bitcoin would likely need to break above approximately $78,600.
This level closely aligns with the upper 4-hour Bollinger Band.
A sustained breakout above that area could weaken the current bearish setup and bring $80,000 back into focus.
If buyers successfully reclaim $80,000, Bitcoin could then attempt another move toward the early September highs near $82,000.
Until then, rallies into the $78,300–$78,600 area could face selling pressure.
$75,500 becomes critical Bitcoin support
The daily chart remains stronger than the shorter-term setup.
Bitcoin is still trading above its daily Supertrend support, positioned at approximately $72,786.
The green Supertrend reading suggests the broader recovery from August remains technically intact as long as Bitcoin holds above this level.
However, immediate support is much closer.
The first defense area consists of the recent low around $76,700 and the lower Bollinger Band near $76,359.
Below that, the liquidation cluster around $76,000 becomes important.
Trader Lennaert Snyder identified $76,000 and $75,500 as two key levels where Bitcoin could potentially find buying interest.
A temporary move below $75,500 followed by a strong recovery could create the conditions for a rebound.
However, a sustained daily close below $75,500 would weaken that scenario considerably.
Bitcoin could fall toward $72,800 if $75,500 breaks
A confirmed break below $75,500 would expose Bitcoin to additional downside risk.
The next major technical area would sit around the daily Supertrend level near $72,800.
This creates a relatively clear short-term structure.
Bitcoin buyers need to defend the $75,500–$76,000 area to prevent the current correction from becoming more significant.
If that support fails, traders could increasingly focus on the $72,800 region.
50-week EMA adds another warning signal
Bitcoin’s position relative to its 50-week exponential moving average is also attracting attention.
Crypto analyst Ted Pillows noted that BTC has moved back below the indicator.
Bitcoin had also closed below the 50-week EMA during the previous week.
According to the analyst, another weekly close below the indicator could increase the risk that the existing downtrend extends further.
The 50-week EMA was positioned near $78,300.
That places it close to the heavy liquidity and resistance region between approximately $78,300 and $78,600.
As a result, reclaiming this area could be important not only for short-term momentum but also for improving Bitcoin’s broader technical structure.
Bitcoin price remains trapped between key levels
Bitcoin is now trading between clearly defined support and resistance zones.
On the downside, the main area to watch is $75,500–$76,000.
A confirmed breakdown below that range could increase the probability of a move toward approximately $72,800.
On the upside, Bitcoin first needs to reclaim $78,300–$78,600.
Breaking above that area could open the door toward $80,000, where the liquidation heatmap shows another large concentration of liquidity.
A sustained move beyond $80,000 could then put the September high near $82,000 back in focus.
What comes next for Bitcoin price?
Bitcoin’s next major move may depend on whether buyers can defend the $75,500–$76,000 support range.
Short-term indicators currently favor sellers.
The 4-hour RSI has fallen below 50, BTC remains beneath the Bollinger Band midpoint, and the cryptocurrency is trading below its 50-week EMA.
At the same time, Bitcoin has not yet broken its broader daily support structure.
Holding above $75,500 could allow buyers to attempt another recovery toward $78,600 and eventually $80,000.
A daily close below $75,500, however, would increase the risk of a deeper correction toward the $72,800 Supertrend support.
For now, traders are likely to remain focused on the CLARITY Act vote, Federal Reserve policy expectations and Bitcoin’s ability to defend its nearest support levels.
Disclaimer: This article is for informational and educational purposes only and should not be considered financial or investment advice.
