Bitcoin (BTC) Remains Firm at $80,000 Despite Legislative Setback... Will it Break $85,000?

▲ Bitcoin (BTC) Bull Market

Bitcoin (BTC) has successfully settled above the $80,000 mark and is attempting to break through the $85,000 resistance level. Although regulatory uncertainty has increased due to the failure of the US Senate to vote on the US cryptocurrency market structure bill, analysis suggests that the Securities and Exchange Commission's (SEC) deregulation measures and capital inflow into spot ETFs are supporting the downside.

According to FX Leaders, a foreign exchange and financial media outlet, on September 20 (local time), Bitcoin broke through the resistance zone of $65,000 to $65,050 last week, recaptured $70,000, and rose to $82,400. Since then, it has been consolidating within a gentle downward regression channel on the 1-hour candlestick chart, maintaining a strong sideways trend above $80,000. Analysis suggests that if the upper bound of the channel is clearly broken with significant trading volume, a technical price target of around $89,000 could open up.

The virtual asset market faced the negative news of the Federal Reserve's (Fed) 0.25 percentage point benchmark interest rate hike last week. Although the interest rate hike was unanimously decided by all 12 members of the Federal Open Market Committee (FOMC), the impact was limited as the market had already priced in a 94% probability of such an increase. Even in a high-interest rate environment, Bitcoin recorded above $81,700 on September 19, and Ethereum also proved its resilience by surpassing $2,600.

Despite legislative difficulties in Washington politics, practical progress by regulatory authorities supported investor sentiment. Although regulatory risks persist due to the failure of the Senate to vote on ending debate on the US cryptocurrency market structure bill, the SEC revitalized the market by introducing an 'innovation exemption' rule, allowing qualified exchanges to trade US-listed tokenized stocks based on on-chain pools. Continuous capital inflow into US Bitcoin spot ETFs is also acting as a price defense mechanism.

Market experts diagnose that settling above the $85,000 resistance level is a prerequisite for Bitcoin to re-enter the $100,000 trajectory. It is pointed out that if it fails to surpass this level, there is a constant risk of it being pushed back to the $67,000 to $70,000 support levels. Whether buying pressure, using the $80,000 defense as a springboard, can break through the $85,000 barrier is expected to be the watershed moment for a serious re-attempt at $100,000.

[Article Key Summary]

-Bitcoin (BTC) rebounded to $82,400 and then entered a consolidation phase above the $80,000 mark.

-Despite the Fed's interest rate hike and the failure of the US cryptocurrency market structure bill, the SEC's approval of tokenized stock trading and ETF inflows provided support.

-Breaking the $85,000 resistance level is essential for a re-challenge of $100,000; failure could lead to a retest of the $70,000 support level.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*