Bitcoin holds above key moving averages despite CLARITY Act sell-off

Key takeaways

• Bitcoin stabilized near $75,950 after dropping more than 1% on Tuesday.
• Ethereum and XRP experienced sharper declines, falling over 4% and 9%, respectively.
• BTC continues to trade above its key 50-day, 100-day, and 200-day exponential moving averages (EMAs).

Bitcoin (BTC) hovered around $75,950 on Wednesday, recovering slightly from a drop of over 3% during the previous session after the CLARITY Act failed to progress in the U.S. Senate.

The broader market faced steeper losses, with Ethereum sliding more than 4% and XRP dropping over 9%. Despite this widespread pullback, Bitcoin managed to hold above its major exponential moving averages, keeping its overall bullish structure intact.

Market participants are now looking ahead to the Federal Reserve’s upcoming interest-rate decision and policy guidance from Chair Kevin Warsh, which could dictate the cryptocurrency market’s next major direction.

CLARITY Act setback pressures crypto prices

The cryptocurrency market lost ground on Tuesday as the CLARITY Act failed to secure the necessary support to advance through the Senate.

This legislative hurdle dampened expectations that Congress would soon deliver a comprehensive regulatory framework for digital assets in the United States. Bitcoin fell by more than 3%, while heavier selling pressure across altcoins pushed Ethereum and XRP significantly lower.

Although prices stabilized on Wednesday, buyers remained hesitant due to ongoing uncertainty surrounding U.S. monetary policy.

The Federal Reserve’s rate decision and subsequent commentary are expected to impact liquidity expectations, Treasury yields, and demand for risk assets. A more restrictive policy outlook could prolong the market’s correction, whereas a less hawkish stance could fuel 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 currently clustered between $71,400 and $73,600.

The 50-day EMA sits at $73,581, just above the 200-day EMA at $73,108, while the 100-day EMA provides deeper support at $71,391.

This technical alignment remains encouraging, as BTC is holding above all three metrics, and the shorter-term 50-day EMA remains positioned above the longer-term indicators.

However, Bitcoin must defend this support zone to prevent the recent pullback from developing into a more significant correction.

Meanwhile, Bitcoin’s Relative Strength Index (RSI) has dipped to around 49, placing it in neutral territory. This reading suggests that neither buyers nor sellers currently hold a strong advantage, though the decline from higher levels highlights a cooling of bullish demand following Tuesday’s sell-off.

The Moving Average Convergence Divergence (MACD) indicator is currently negative and sits below the zero line. This suggests that while Bitcoin’s long-term bullish trend remains intact, short-term momentum favors consolidation or further downward movement.

On the downside, the 50-day EMA at $73,581 serves as the initial line of defense. If sellers push BTC below this level, the 200-day EMA at $73,108 could offer the next area of support, followed by the 100-day EMA at $71,391. A failure to hold this entire moving-average cluster could expose lower horizontal support levels at $66,500 and $62,300.

To the upside, Bitcoin faces major resistance near $85,000. A sustained move above this threshold would signal a return of bullish strength and potentially restart the broader uptrend.