Bitcoin traders are split on the cryptocurrency's near-term direction after prices fell to around $76,000 following the Senate's failure to advance the CLARITY Act on Tuesday.
Trader Matthew Hyland identified what he believes is a daily cycle low with a bullish divergence forming on charts, predicting Bitcoin could reach above $90,000 by early November. Hyland noted liquidity around the $75,000 level and characterized the recent decline as a liquidity grab rather than a sustained downtrend.
Other analysts take a more pessimistic view. Ted Pillows pointed out that Bitcoin has broken below its 50-week exponential moving average, calling a drop to the $70,000–$72,000 range highly likely before any reversal. Crypto Patel has maintained a $50,000 target unless Bitcoin closes above $83,000 on a higher timeframe.
CryptoQuant contributor IT Tech offered a different perspective, analyzing Bitcoin holdings rather than price structure alone. The analyst noted that the 6- to 12-month supply band has climbed to 30.8% of realized cap, up from 16.2% in December, a pattern that has aligned with previous Bitcoin bottoms. However, IT Tech stopped short of calling it a cycle low, describing the pattern as mid-cycle floor building rather than a definitive bottom.
Bitcoin's decline accelerated after the Senate failed to secure the 60 votes needed to advance the CLARITY Act. Short-term holders sent more than 23,000 BTC to exchanges at a loss in the aftermath, valued at close to $1.8 billion and marking the largest capitulation event in approximately one month. Bitcoin is still up nearly 19% over the past 30 days despite the recent weakness.
