BTC clings to key EMAs after CLARITY Act disappointment in Senate

Key points

• After Tuesday's drop of more than 1%, BTC was changing hands around $75,950.
• Ethereum and XRP slid more than 4% and 9%, respectively.
• Bitcoin continues to sit above the 50-day, 100-day and 200-day EMAs.

On Wednesday, bitcoin (BTC) was trading at roughly $75,950, having fallen more than 3% in the prior session when the CLARITY Act could not move forward in the US Senate.

Ethereum and XRP fared worse, with declines of more than 4% and 9%, respectively. Even with the broad sell-off, bitcoin continues to hold above its key exponential moving averages, keeping the wider bullish setup intact.

Traders are now focused on the Federal Reserve's rate decision and the forward guidance from Chair Kevin Warsh, which could prove decisive for the crypto market's next major move.

Crypto prices pressured after CLARITY Act setback

Tuesday brought weakness to the crypto market after the CLARITY Act did not get enough support to proceed in the Senate.

That failure dampened hopes that lawmakers would quickly create a full regulatory regime for the US digital-asset sector. BTC dropped more than 3%, and stronger selling among alternative coins sent Ethereum and XRP down sharply.

Wednesday saw prices settle, though worries about US monetary policy left buyers wary.

The Fed's rate call and the guidance that follows may shape liquidity expectations, Treasury yields and appetite for risky assets. A more hawkish stance could prolong the crypto correction, whereas a softer tone might help prices bounce back.

Bitcoin's EMA setup stays bullish

Bitcoin keeps trading above the 50-day, 100-day and 200-day exponential moving averages, with the trio grouped roughly between $71,400 and $73,600.

The 50-day EMA sits at $73,581, while the 200-day EMA is a bit lower at $73,108. Further support comes from the 100-day EMA at $71,391.

That setup is still bullish, as BTC holds above all three averages and the shorter 50-day EMA continues to sit above the longer-term ones.

Still, bitcoin needs to protect this support zone to keep the latest dip from turning into a deeper slide.

Bitcoin's Relative Strength Index has eased to around 49, putting it close to a neutral reading.

That level points to a lack of decisive momentum from either buyers or sellers. Even so, the drop from earlier highs suggests buying interest has faded after Tuesday's decline.

The Moving Average Convergence Divergence indicator is still negative and beneath the zero line. That points to an intact wider bullish structure, though near-term momentum currently leans toward consolidation or additional losses.

Bitcoin's first notable support is the 50-day EMA at $73,581. Should sellers drive BTC underneath that, the 200-day EMA at $73,108 might serve as the next line of defense. A more pronounced decline would put the 100-day EMA at $71,391 in play.

If the whole moving-average group gives way, lower horizontal support around $66,500 and $62,300 could come into view.

To the upside, bitcoin encounters meaningful resistance around $85,000. Climbing back above that level on a lasting basis would suggest renewed buying power and could set the wider uptrend back in motion.