Key takeaways
- Bitcoin traded near $75,950 after falling more than 1% on Tuesday.
- Ethereum and XRP declined more than 4% and 9%, respectively.
- BTC remains above its 50-day, 100-day, and 200-day EMAs.
Bitcoin (BTC) traded near $75,950 on Wednesday after declining more than 3% during the previous session as the CLARITY Act failed to advance in the US Senate.
Ethereum and XRP suffered steeper losses, falling more than 4% and 9%, respectively. Despite the market-wide pullback, Bitcoin remains above its major exponential moving averages, preserving its broader bullish structure.
Traders now await the Federal Reserve’s interest-rate decision and Chair Kevin Warsh’s forward guidance, which could determine the cryptocurrency market’s next major move.
CLARITY Act failure pressures crypto prices
The cryptocurrency market weakened on Tuesday after the CLARITY Act failed to secure sufficient support to advance in the Senate.
The setback reduced expectations that Congress would soon establish a comprehensive regulatory framework for the US digital-asset market. Bitcoin fell more than 3%, while greater selling pressure across altcoins pushed Ethereum and XRP sharply lower.
Prices stabilized on Wednesday, but uncertainty surrounding US monetary policy kept buyers cautious.
The Federal Reserve’s rate decision and subsequent guidance could influence liquidity expectations, Treasury yields, and demand for risk assets. A more restrictive outlook could extend the crypto market’s correction, while a less hawkish message may support a recovery.
Bitcoin maintains bullish EMA structure
Bitcoin continues to trade above its 50-day, 100-day, and 200-day exponential moving averages, which are clustered between approximately $71,400 and $73,600.
The 50-day EMA stands at $73,581, while the 200-day EMA is positioned slightly lower at $73,108. The 100-day EMA provides additional support at $71,391.
This configuration remains constructive because BTC is trading above all three averages and the shorter-term 50-day EMA remains above the longer-term indicators.
However, Bitcoin must defend this support cluster to prevent the recent pullback from developing into a deeper correction.
Bitcoin’s Relative Strength Index has slipped to approximately 49, placing it near neutral territory.
The reading indicates that neither buyers nor sellers have established strong momentum. However, the decline from higher levels shows that bullish demand has weakened following Tuesday’s sell-off.
The Moving Average Convergence Divergence indicator remains negative and below the zero line. This suggests that Bitcoin’s broader bullish structure is still intact, but short-term momentum currently favors consolidation or further downside.
The 50-day EMA at $73,581 represents Bitcoin’s first important support level. If sellers push BTC below that level, the 200-day EMA at $73,108 could provide the next line of defense. A deeper correction would place the 100-day EMA at $71,391 in focus.
Failure to hold the entire moving-average cluster could expose the lower horizontal support levels at $66,500 and $62,300.
On the upside, Bitcoin faces significant resistance near $85,000. A sustained recovery above that barrier would signal renewed bullish strength and potentially restart the broader uptrend.
Credit: Source link