Key takeaways
- Bitcoin recovers slightly on Wednesday after finding support below $80,000.
- US-listed spot ETF saw outflows of $233 million on Tuesday,
Bitcoin finds support at a key level
Bitcoin (BTC) has slightly rebounded and is currently trading above $81,000 on Wednesday, following a retest of a critical technical support level the previous day.
The price surge is attributed to a recent correction and support found near the psychological $80,000 mark. As market participants await the Senate Banking Committee’s vote on the Clarity Act on Thursday, there are early indications that this could be a near-term catalyst for Bitcoin’s future price action.
Institutional demand appears to be showing some caution this week. Spot BTC Exchange-Traded Funds (ETFs) recorded a notable outflow of $233.25 million on Tuesday, after a modest inflow of $27.29 million the previous day, according to CoinGlass data.
If these outflows persist or intensify in the coming days, Bitcoin may experience a price correction. However, the focus remains on the Senate Banking Committee’s upcoming vote on the Clarity Act, which is anticipated to have a significant impact on the crypto market.
Bitcoin’s recent price action has lost momentum as it faces resistance around the 200-day Exponential Moving Average (EMA), hovering near $82,000.
The ongoing consolidation suggests that Bitcoin is taking a breather after a strong rally since early April. However, the outlook remains bullish, with the largest cryptocurrency by market capitalization potentially poised to resume its upward trend. Analysts are optimistic that the Clarity Act, which is expected to be voted on Thursday, could trigger a breakout for Bitcoin.
Bitcoin price forecast: BTC consolidating above key EMAs
Despite some caution in institutional demand, Bitcoin is showing a bullish near-term bias, with support holding above the 50-day and 100-day Exponential Moving Averages (EMAs).
These EMAs are clustered just below $76,800 and are part of a parallel channel, suggesting ongoing consolidation in the price action.
The Relative Strength Index (RSI) on the daily chart is near 61, indicating positive momentum without being overextended.
Meanwhile, a slightly negative Moving Average Convergence Divergence (MACD) reading points to moderating upside pressure, rather than a reversal, as Bitcoin remains below the 200-day EMA near $82,100.
If the rally persists, Bitcoin will face initial resistance at the 200-day EMA around $82,100, followed by the 61.8% Fibonacci retracement level near $83,440 and a horizontal barrier at $84,410.
A sustained break above this resistance zone could open the door for a run toward the January peak of around $97,925.
However, if the bears regain control, support is seen at the psychological $80,000 level, with further support zones near the 50% retracement at $78,960 and the 100-day and 50-day EMAs around $76,730 and $76,420, respectively.
