Bitcoin (BTC) continued to slide on Thursday, extending the downward trend seen throughout the week and briefly falling below the closely watched $85,000 level, despite progress on long-awaited US crypto legislation failing to lift market sentiment.
Crypto Prices Fall Despite Regulatory ProgressThe decline came on the same day the Senate Agriculture Committee advanced its portion of the proposed crypto market structure legislation, known as the CLARITY Act. While the committee’s action was widely viewed as a positive development for the digital asset industry, it did little to support prices in the short term.
Bitcoin Hovers Near Breakdown LevelsWith the Agriculture Committee’s approval secured, lawmakers must merge the provisions that expand the Commodity Futures Trading Commission’s (CFTC) role with parallel sections overseen by the Senate Banking Committee, which address the Securities and Exchange Commission’s jurisdiction.
At the same time, legislators will need to determine whether bipartisan backing can still be achieved for a measure that could significantly reshape crypto regulation in the US.
According to his analysis, a decisive break below the roughly $86,000 area could open the door to another test of the macro triangle bottom near $82,500. A further drop below that level, he cautioned, would signal an acceleration of bearish momentum.
As of now, the market’s leading cryptocurrency has only briefly recovered to $85,135. However, it is still far from reaching the critical level outlined by the analyst. Therefore, Friday’s price action will be crucial in determining Bitcoin’s next move.
Featured image from OpenArt, chart from TradingView.com
