Bitcoin”s current price action shows some wild movements it”s been making with traders closely watching the $78,000 support level. The BitMEX cofounder warned what could be a further slide down towards $75,000 if the price ranges below this level. With considerable open interest in options contracts, ranging from $70,000 to $75,000, jumping that gap could lead to a huge change in price.

Bitcoin dominance is also rising towards 63-64%. Historically, more dominance in BTC could pull altcoins down, and that is what is happening even now. The altcoin market continues to struggle while Bitcoin consolidates.

1W50EMA Holds the Key to BTC”s Next Move

It would be no surprise that, as its name suggests, the one-week 50 Exponential Moving Average (1W50EMA) comes into play. This marked the bullish and bearish market trend boundary. As long as the Bitcoin price remained above this line, it could be used as proof of the bullish trend. An opposite reading, however, would see a possible deep correction that will significantly hit the price.

Different views are evident amongst traders as to Bitcoin”s current performance into bearish territory. Some argue that structural supports are still alive, while some argue that a slow downward trend that could find a massive drop in capitulation is forming. A break below $77,000 would tilt the odds in favor of bear control over BTC”s path.

Could a Fakeout Lead to a Rebound?

Looking at Liquidity data, it is anticipated that Bitcoin might see another upward move before any considerable downside. Liquidity is clustering around $80,000 and $82,000 for any potential resistance that BTC may encounter sometime before return testing support.

One possible scenario that analysts are pondering is, an opportunity for a rebound following a cooling-out decline/price stabilization- from $77,000 and before further recovery. If $77,000 holds, anybody could reason well in support of a bullish hypothesis and consider building on toward the next rally wave. But should the said level crash, there might be a straight-down fallback until it arrives at $75,000 and beyond towards much lower levels.