Bitcoin traded near $75,950 on Wednesday after falling more than 3% during the previous session. Ethereum and XRP suffered steeper declines, dropping more than 4% and 9%, respectively, as the failure of the CLARITY Act to advance in the US Senate weighed on the broader cryptocurrency market.
Despite the market-wide pullback, Bitcoin remains above its 50-day, 100-day and 200-day exponential moving averages, preserving its broader bullish structure. Attention now turns to the Federal Reserve’s interest-rate decision and its forward guidance, which could influence liquidity expectations and demand for risk assets.
CLARITY Act setback weighs on crypto markets
Crypto markets weakened after the CLARITY Act failed to secure enough support to advance in the Senate. The setback reduced expectations that Congress would soon establish a comprehensive regulatory framework for digital assets in the United States.
Bitcoin declined more than 3%, while selling pressure across altcoins pushed Ethereum and XRP sharply lower. Prices stabilized on Wednesday, although uncertainty over US monetary policy continued to keep traders cautious. A more hawkish Federal Reserve outlook could extend the correction, while less restrictive guidance could support a recovery.
Bitcoin remains above key technical support
Bitcoin is trading 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, the 200-day EMA at $73,108 and the 100-day EMA at $71,391.
The configuration remains constructive because Bitcoin is above all three averages and the 50-day EMA remains higher than the longer-term indicators. However, Bitcoin must hold this support zone to prevent the recent pullback from developing into a deeper correction.
Bitcoin’s Relative Strength Index has declined to approximately 49, indicating balanced momentum between buyers and sellers. The retreat from higher levels suggests that bullish demand has weakened following Tuesday’s sell-off. The Moving Average Convergence Divergence indicator is also negative and below the zero line, pointing to a risk of further consolidation or near-term weakness.
Support and resistance levels
The 50-day EMA at $73,581 is the first major support level. A break below it could bring the 200-day EMA at $73,108 into focus, followed by the 100-day EMA at $71,391. Losing the broader moving-average cluster could expose lower support near $66,500 and $62,300.
On the upside, Bitcoin faces significant resistance near $85,000. A sustained move above that level would indicate renewed bullish momentum and could help restart the broader uptrend.
