Bitcoin rallied to an intraday high of $81,957 during Thursday’s US trading session, driven by optimism around a key Senate Banking Committee vote on the CLARITY Act. This legislation, seen as a potential milestone for stablecoin regulation, passed with bipartisan support, including two Democrats joining the Republican majority. Many traders hoped the bill would provide a long-awaited legal framework, and Bitcoin briefly flashed a “god candle” as excitement peaked.
But the rally didn’t last. The price action quickly turned into a classic “sell the news” event. On Binance, BTC managed a brief push above $82,000, but exhausted bulls couldn’t sustain the momentum. That $82,000 level has been a stubborn technical resistance for some time now. It aligns closely with the 200-day simple moving average and the upper boundary of an ascending channel. Traders have been using that supply zone for profit-taking, causing repeated pullbacks.
Key support and resistance levels
Still, Bitcoin has managed to stabilize above $80,000, which is a key psychological support now acting as a floor. For any sustained upside, the cryptocurrency needs to hold above that level on a daily close. A failure to do so could invite a deeper correction. As long as BTC stays above $80,000, bulls still have a chance to push 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. That suggests bearish momentum may be weakening. The RSI has also climbed back above the neutral 50 level, indicating buying strength is stabilizing, though momentum remains relatively weak for a decisive breakout.
Macroeconomic headwinds
With the CLARITY Act markup done for now, attention has shifted to the Federal Reserve. The market is bracing for the leadership transition from Jerome Powell to Kevin Warsh. But perhaps 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 Fed 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 perceived as more hawkish on inflation than his predecessor, which could bolster the Dollar and pressure risk assets.
ETF flows add to caution
Investors are also closely watching net inflows into spot Bitcoin ETFs. After six weeks of consistent gains, the institutional “buy wall” hit a significant snag on Wednesday, with heavy outflows totaling $635.2 million. That was the largest single-day exit since late January. On Thursday, inflows turned positive again, with over $131 million flowing in, but the modest recovery wasn’t enough to offset broader cautiousness.
What’s next for Bitcoin?
From a technical perspective, Bitcoin remains stuck in a consolidation range after failing to hold above the $82,000 breakout zone. A move above $82,000 could open the door toward higher resistance levels. On the other hand, a breakdown below $80,000 may expose Bitcoin to a deeper correction toward the $76,000 to $78,000 range. For now, the path of least resistance seems uncertain, with both bulls and bears finding reasons to pause.
