Bitcoin price returned above $80,000 ahead of the CLARITY Act markup, but the rally once again fizzled around the $82,000 mark, which has proven to be a stubborn key resistance level.
During the US trading session on Thursday, Bitcoin price rallied to an intraday high of $81,957 as crypto traders priced in bullish momentum around the key Senate Banking Committee voting session.
The legislation is widely viewed as a pivotal regulatory milestone for the crypto space and, as such, Bitcoin printed a “god candle” as traders hoped that the bill would provide the long-awaited legal framework for stablecoins.
Much to the delight of the industry, the committee voted for the CLARITY Act to pass and move on to the House floor, with two Democrats joining the Republican majority in a rare show of bipartisan support.
While this was a major regulatory win and many investors expected Bitcoin to continue higher toward new price discovery, the price action played out like a classic “sell the news” event, where distribution began ahead of the main announcement.
On Binance, $BTC price briefly managed to break through $82,000 but exhausted bulls couldn’t gather enough liquidity to keep pushing higher.
As previously reported by Invezz, this area has been acting as a formidable technical resistance that has repeatedly capped Bitcoin’s upside momentum.
The level aligns closely with the 200-day simple moving average (SMA) and the upper boundary of the current ascending channel, and traders have been using this supply zone for profit-taking opportunities, leading to repeated pullbacks.
What’s next for Bitcoin?
Although Bitcoin failed to sustain its breakout, it has once again managed to stabilize above $80,000, which is a key psychological support level turned resistance.
For any sort of upside continuation to materialize, the flagship crypto must hold above this level on the daily close to prevent a deeper correction.
With the CLARITY Act markup done for the moment, attention has now shifted to the Federal Reserve, where the market is bracing for the leadership transition from Jerome Powell to Kevin Warsh.
The biggest immediate drag on Bitcoin this week has been the US CPI Report released on Wednesday. Headline inflation accelerated to 3.8% year-on-year, exceeding expectations of 3.7%. Core inflation also surprised to the upside at 2.8%.
This data has reignited 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 as he takes up the mantle of Fed Chair. Warsh is generally perceived as more hawkish on inflation than his predecessor, which could bolster the Dollar and pressure risk assets.
Investors will also be watching net inflows into spot Bitcoin ETF products for further cues on institutional sentiment.
After six weeks of consistent gains, the institutional “buy wall” has hit a significant snag as heavy outflows totaling $635.2 million hit the tapes on Wednesday, the largest single-day exit since late January.
On Thursday, inflows once again turned positive with over $131 million flowing in, but the modest recovery was not enough to offset the broader cautiousness permeating the market.
Price Analysis
According to the 4-hour $BTC/USD chart, Bitcoin remains stuck in a consolidation range after failing to hold above the recent breakout zone near $82,000.
$BTC/USD 4-hour price chart. Source: TradingView.
As long as $BTC stays above the $80,000 support level, bulls still retain a chance of pushing prices higher in the near term.
The MACD indicator is showing early signs of recovery, with the histogram turning green and the MACD line 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, showing that buying strength is stabilizing again, though momentum still remains relatively weak for a decisive breakout.
A move above $82,000 could open the door toward higher resistance levels, while a breakdown below $80,000 may expose Bitcoin to a deeper correction toward the $76,000 to $78,000 range.
