Bitcoin struggles below $82K despite CLARITY Act progress

Bitcoin briefly touched $81,957 during US trading hours Thursday as crypto traders reacted to bullish momentum around a critical Senate Banking Committee vote. The legislation, known as the CLARITY Act, is seen as a key regulatory milestone for the crypto industry. Many hoped it would finally provide a legal framework for stablecoins.

Bipartisan passage triggers profit-taking

The committee voted to advance the bill to the House floor, with two Democrats supporting it alongside Republican members. This rare show of bipartisanship delighted the sector. But instead of rallying further, Bitcoin’s price action resembled a classic “sell the news” event. Distribution began ahead of the announcement.

On Binance, BTC briefly breached $82,000, but exhausted buyers could not sustain the push. As previously reported, this level acts as strong technical resistance. It aligns closely with the 200-day simple moving average (SMA) and the upper boundary of the current ascending channel. Traders have repeatedly used this zone for profit-taking, leading to consistent pullbacks.

Bitcoin holds above $80,000 for now

Despite failing to break out decisively, Bitcoin has stabilized above $80,000. This key psychological support is now being tested. For any upside continuation, the leading cryptocurrency must hold this level at the daily close to avoid a deeper correction.

With the CLARITY Act markup complete, attention has shifted to the Federal Reserve. Markets are bracing for the leadership transition from Jerome Powell to Kevin Warsh. The biggest immediate drag on Bitcoin this week was the US CPI Report released Wednesday. Headline inflation accelerated to 3.8% year-on-year, above the expected 3.7%. Core inflation also surprised to the upside at 2.8%.

This data renewed fears that the Federal Reserve may not only delay rate cuts but could potentially hike rates again before year-end. All eyes are now on Warsh and his inaugural policy comments. He is generally viewed as more hawkish on inflation than his predecessor, which could strengthen the Dollar and pressure risk assets.

Institutional flows show caution

Investors are also monitoring net inflows into spot Bitcoin ETF products for institutional sentiment. After six weeks of consistent gains, the “buy wall” hit a snag. Heavy outflows totaling $635.2 million hit on Wednesday, the largest single-day exit since late January. Thursday saw inflows turn positive again with over $131 million, but the modest recovery was not enough to offset broader cautiousness.

Price analysis suggests rangebound action

On the 4-hour $BTC/USD chart, Bitcoin remains in a consolidation range after failing to hold above the recent breakout zone near $82,000. As long as it stays above $80,000 support, bulls still retain a chance of pushing prices higher in the near term.

The MACD indicator is showing early signs of recovery. The histogram has turned green, and the MACD line is attempting a bullish crossover. This suggests bearish momentum may be weakening after the recent pullback. Meanwhile, the RSI indicator has climbed back above the neutral 50 level, indicating that buying strength is stabilizing. Still, momentum remains relatively weak for a decisive breakout.

A move above $82,000 could open the door toward higher resistance levels. A breakdown below $80,000 may expose Bitcoin to a deeper correction toward the $76,000 to $78,000 range.

The post Bitcoin struggles below $82K despite CLARITY Act progress appeared first on TheCryptoUpdates.