The BTC price is losing momentum again after Bitcoin dropped below $75,000, its weakest level since the April recovery rally toward $82,000. The bulls were unable to penetrate the $82k-$84k resistance area, and now the focus shifts towards the delays concerning the passage of the CLARITY Act.
After the Memorial Day recess, there was no progress on key legislative issues in the Senate. This may push the expected date for passing the CLARITY Act into July, which puts additional pressure on the BTC/USD pair because the institutional investors are waiting for crypto regulations.
What you'll learn 👉
Why the BTC Price Is Struggling
The broader crypto market is already showing signs of stress. Total crypto market capitalization has dropped to around $2.5 trillion, and Ethereum lost the important $2,100 support level this week.
The SEC also added pressure after delaying its expected tokenization exemption framework. Concerns emerged around synthetic tokenized products that could track stocks without giving holders actual ownership rights. That decision weakened sentiment across the market and added to the uncertainty traders are already dealing with.
ETF flows are not helping either. Institutional demand has slowed, with outflows continuing across crypto investment products this week. Many large investors appear willing to wait for more clarity before increasing exposure again.
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Even President Trump’s executive orders aimed at improving banking access for crypto and fintech firms failed to spark a strong reaction from the market. The orders encourage the Federal Reserve to review access rules for master accounts, but they stop short of guaranteeing anything for crypto companies.
At the same time, the Federal Reserve itself is entering a new chapter. Kevin Warsh is now officially the 17th Fed Chair of the week, having promised that he would steer the Fed down the path of more reforms. The markets are currently attempting to decipher how that could affect the interest rates and liquidity, among others.
What the Bitcoin Chart Is Showing
We had a look at the BTC chart, and the structure still leans cautious in the short term. Bitcoin has been printing lower highs since mid-May after repeated rejection near the $78,500 to $80,000 area. That zone has become the biggest resistance level on the chart right now.
The BTC price is also trading below the 100-period simple moving average at $78,571, which keeps short-term pressure tilted toward sellers. Momentum has cooled as well. The RSI is currently at 54, which means it is neutral, but bearish divergences earlier pointed to the coming decline.
It is now important to look out for support levels between $72,000 and $74,000. The buyers managed to defend this range earlier during pullbacks, and a breakdown would likely see the price head toward $70,000.
However, there is still the potential of a recovery move when the price manages to return to above the SMA 100 line at $80,000 with increasing buying activity.
What Happens if the CLARITY Act Gets Delayed Further?
As such, if the bill is not passed before 2027, the crypto market can get stuck in this ambiguous climate for far longer than expected by the traders.
Large investors generally tend to be cautious when the regulatory situation is ambiguous, even in the case of the US market. This means that there could be less interest in both Bitcoin and alternative coins in the absence of clear regulations.
Moreover, the retail sentiment seems to be lower compared to the start of this year. With stocks still reaching their all-time high levels, it can be very hard for cryptocurrency to get additional funding during such policy ambiguity.
BTC has formed a consolidation range where both political and technical factors play important roles. It is quite possible that a clear framework of rules will finally bring confidence back, yet its delay keeps the negative impact ongoing.
At the moment, the BTC price finds itself between support close to $72,000 and resistance ranging from $78,500 to $80,000. Its break out of the range should determine further direction whether for consolidation or more correction in 2026.
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