Bitcoin Price Drop Mirrors 2022 Setup as CLARITY Act Stalls Again
Bitcoin's price drop has left traders on edge as it mirrors the 2022 setup. The CLARITY Act, aimed at setting a federal rulebook for crypto in the US, stalled again in the Senate after Senator Cynthia Lummis said Democrats weren't budging on ethics language.
The monthly chart shows that Bitcoin got rejected off its top range in 2022, dropped hard, and then rallied back to retest the ceiling. The current chart is repeating this sequence, with a bullish divergence showing up next.
While nobody's calling it a guaranteed repeat, the fractal is close enough that many chart-watchers are treating $70,000 as the line in the sand for Bitcoin's direction.
The order flow also suggests support levels between 68K and 74,000, with a fair value gap near $70.3K lining up almost exactly with this band.