Bitcoin's Downturn Persists Amidst US Regulatory Headway
Bitcoin (BTC) continued its downward trajectory throughout the week, briefly dipping below the critical $85,000 mark. This decline occurred despite significant progress on long-awaited US crypto legislation, which unexpectedly failed to uplift market sentiment.
Regulatory Advances Fail to Buoy Crypto Market
Thursday saw the Senate Agriculture Committee advance its section of the proposed crypto market structure legislation, dubbed the CLARITY Act. While this was largely perceived as a positive step for the digital asset industry, it did not translate into immediate price support. Instead, Bitcoin plummeted by approximately $2,700 in a short span, triggering a cascade of liquidations totaling around $803 million across the crypto market within 24 hours. A substantial $693 million of this figure accounted for long position liquidations, highlighting investor vulnerability. The CLARITY Act aims to establish a clearer regulatory framework for digital assets in the United States, but legislative efforts now face the challenge of merging provisions extending the CFTC's role with those under the Senate Banking Committee's purview, which addresses SEC jurisdiction.
Crucial Levels for Bitcoin's Next Move
From a technical standpoint, market analyst Rekt Capital emphasizes the importance of Bitcoin holding the $86,000 level. Should this former support turn into resistance on lower time frames, a deeper breakdown could be imminent. A weekly close above $86,000 is deemed essential to avert a significant bearish shift. Conversely, a decisive break below $86,000 could lead to a test of the macro triangle bottom near $82,500. A further fall below this level, the analyst warns, would accelerate bearish momentum. With Bitcoin currently hovering around $85,135, Friday's price action will be pivotal in dictating the cryptocurrency's immediate future.
