Bitcoin (BTC) continued to slide on Thursday, extending the downward trend seen throughout the week and briefly falling below the closely watched $85,000 level, despite progress on long-awaited US crypto legislation failing to lift market sentiment.
The decline came on the same day the Senate Agriculture Committee advanced its portion of the proposed crypto market structure legislation, known as the CLARITY Act. While the committee’s action was widely viewed as a positive development for the digital asset industry, it did little to support prices in the short term.
Instead of triggering a rally, the news coincided with a sharp market sell‑off. Bitcoin dropped by roughly $2,700 in a short period, setting off a wave of liquidations that erased an estimated $356 million in long positions.
Data from Coinglass further shows that total liquidations across the crypto market reached about $803 million over the past 24 hours, including roughly $693 million in long liquidations and $109 million in short liquidations.
As earlier reported by Bitcoinist, the CLARITY Act cleared an important procedural hurdle earlier on Thursday when the Senate Agriculture Committee approved its section of the bill during a scheduled markup. The legislation aims to establish a clearer regulatory framework for digital assets in the United States.
With the Agriculture Committee’s approval secured, lawmakers must merge the provisions that expand the Commodity Futures Trading Commission’s (CFTC) role with parallel sections overseen by the Senate Banking Committee, which address the Securities and Exchange Commission’s jurisdiction.
At the same time, legislators will need to determine whether bipartisan backing can still be achieved for a measure that could significantly reshape crypto regulation in the US.
From a technical perspective, market analyst Rekt Capital said that in the near term, Bitcoin needs to prevent the former range low around $86,000 from turning into resistance on lower time frames. He added that a weekly close above that level would be necessary to avoid a deeper breakdown.
According to his analysis, a decisive break below the roughly $86,000 area could open the door to another test of the macro triangle bottom near $82,500. A further drop below that level, he cautioned, would signal an acceleration of bearish momentum.
As of now, the market’s leading cryptocurrency has only briefly recovered to $85,135. However, it is still far from reaching the critical level outlined by the analyst. Therefore, Friday’s price action will be crucial in determining Bitcoin’s next move.
Featured image from OpenArt, chart from TradingView.com
