Bitcoin Price Forecast: BTC rebounds from $80,000 as traders await Clarity Act vote
- Bitcoin recovers slightly on Wednesday after finding support around the key psychological level at $80,000 the previous day.
- US-listed spot ETF saw outflows of $233 million on Tuesday, signaling a cautious stance among institutional investors.
- The Senate Banking Committee is expected to vote on the Clarity Act on Thursday, with markets viewing the latest draft as broadly constructive for the crypto industry.
Bitcoin (BTC) price rebounds slightly and trades above $81,000 at the time of writing on Wednesday, following a retest of a key technical support level the previous day. Institutional demand shows early signs of caution, with spot BTC Exchange Traded Funds (ETFs) recording outflows. Market participants now remain focused on the upcoming Senate Banking Committee vote on the Clarity Act on Thursday, which, if passed, could act as the near-term catalyst for the Crypto King.
Clarity could act as a catalyst for BTC
Bitcoin’s ongoing price rally has lost momentum as it faced resistance near the 200-day Exponential Moving Average (EMA) at around $82,000, a strong overhead resistance zone.
The current price action suggests a consolidation phase, following a massive move since early April, as bulls take a breather. The Crypto King is rebounding slightly as of writing on Wednesday after correcting and finding support near the key psychological level of $80,000 the previous day.
This price consolidation could end, with the largest cryptocurrency by market capitalization poised to resume its upward trend as the Senate Banking Committee is expected to vote on the Clarity Act on Thursday.
“Markets viewing the latest draft as broadly constructive for the crypto industry,” said K33 Research analyst in its Tuesday report.
The analyst continued, “The most likely outcome is that the bill advances out of committee while broader bipartisan negotiations continue ahead of a full Senate vote. Focus will now shift toward ethics-related amendments and how lawmakers balance stablecoin growth, DeFi protections, and financial crime concerns as the bill progresses through Congress.”
Apart from this, the report further explained that several near-term catalysts could support a breakout higher. With BTC, perpetual traders remain heavily defensive, creating the potential for short-covering flows, while STRC’s ex-dividend date this week may prompt aggressive BTC purchases from Strategy.
Institutional demand shows early signs of cautions
Institutional demand shows slight caution signs as the week progresses. SoSoValue data showed that spot BTC ETFs listed in the US recorded an outflow of $233.25 million on Tuesday after a mild inflow of $27.29 million the previous day. If these withdrawals continue and intensify in the latter half of the week, BTC could see a price correction.
Bitcoin Price Forecast: BTC finds support around a key level
Bitcoin price is rebounding slightly, trading at $81,000 on Wednesday, after finding support around the psychological $80,000 level the previous day. The Crypto King is holding a bullish near-term bias as it consolidates above the 50-day and 100-day Exponential Moving Averages (EMAs) clustered just below $76,800 and comfortably within a parallel channel.
The Relative Strength Index (RSI) on the daily chart near 61 suggests positive but not overextended momentum, while a slightly negative Moving Average Convergence Divergence (MACD) reading hints that upside pressure is moderating rather than reversing as price remains below the 200-day EMA near $82,100.
On the topside, initial resistance appears at the 200-day EMA around $82,100, followed by the 61.8% Fibonacci retracement near $83,440 (drawn from the January high to the February low) and a horizontal barrier around $84,410. A sustained break above this band would open the way toward the January peak around $97,925.
On the downside, first support is seen at the psychological $80,000 handle, ahead of the 50% retracement near $78,960, with the 100-day and 50-day EMAs around $76,730 and $76,420, respectively, and the channel top at $75,680, forming a broader demand zone.
(The technical analysis of this story was written with the help of an AI tool.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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