Bitcoin staged a strong bounce on Thursday, rebounding sharply from a key technical support level just as the Senate Banking Committee began its live markup of the CLARITY Act. Crypto markets have been waiting months for this regulatory moment and the price reaction suggests at least some of that anticipation is being priced in real time.
The bounce came directly off the 21-week exponential moving average,a level analysts had been flagging for days as the critical support line that would define whether the short-term uptrend remained intact.
Despite the positive price action, analysts issued warnings before calling this a breakout. Bitcoin has rallied more than 30% from its February lows but has only just reached what technical analysts describe as standard resistance levels within a larger bearish structure.
The current move remains a three-wave corrective advance rather than the five-wave trending structure that would confirm a genuine new bull phase. Until Bitcoin produces five clear waves higher, the rally is technically classified as a counter-trend move within a larger correction.
Resistance levels standing between current prices and a real breakout:
A comparison with the 2022 bear market rally is instructive. That bounce reached a 50% Fibonacci retracement and moved roughly 10% above the 21-week EMA before collapsing. Bitcoin is currently only at the 38.2% retracement. The 50% level sits around $87,000, suggesting more upside is possible before the larger bearish pattern reasserts itself.
On the downside, $76,527 is the number to watch. As long as Bitcoin holds above that Fibonacci support zone, the short-term bullish momentum stays alive. A break below it changes the picture entirely.
For now the CLARITY Act catalyst and the technical bounce are pointing in the same direction. Whether that continues depends on what comes out of Thursday’s Senate committee room.
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