Bitcoin Faces $75,500 Test as Traders Reduce Risk Ahead of CLARITY Act Vote

Bitcoin's price has been affected by traders reducing risk before a key U.S. Senate vote on the CLARITY Act, causing it to fall below $77,000. According to data from crypto.news, Bitcoin traded at around $76,704 after reaching an intraday high of $78,250.

The decline followed another failed attempt to hold the $79,000 area, and buyers have repeatedly defended the region between $76,500 and $77,000. The 4-hour relative strength index stood at 44.20, below its signal line at 48.76, indicating that bullish momentum had weakened.

Uncertainty surrounding the Digital Asset Market Clarity Act has contributed to cautious trading conditions. The U.S. Senate is preparing for a cloture vote on the market-structure bill, which requires 60 votes to open debate. Traders had previously responded positively to reports of a revised draft, but doubts about whether the legislation could reach the required threshold have reduced that optimism.

Crypto analyst Ted Pillows warned about the 50-week exponential moving average, saying that Bitcoin has moved back below it and another weekly close beneath it could accelerate the existing downtrend. The chart shared by Pillows placed the 50-week EMA near $78,300, making the $78,300-$78,600 range an important recovery zone.