Clarity Act Rejected, Yet Bitcoin Surpasses $85,000… What's Behind the Market Reversal?

▲ Bitcoin (BTC)/ChatGPT generated image ©

Bitcoin (BTC) has surprisingly surpassed $85,000 even after the failure to process the U.S. cryptocurrency market structure bill, the Clarity Act. While the inflow of funds into Bitcoin spot ETFs and the resumption of purchases by Strategy have boosted risk appetite, artificial intelligence (AI)-related tokens such as BitTensor (TAO) and Fetch.ai (FET) are leading the uptrend.

According to investment specialized media FXStreet on September 22 (local time), Bitcoin surged over 6% the previous day and is now trading above $85,000. Last Friday, $433.03 million flowed into U.S. Bitcoin spot ETFs, and if BlackRock's IBIT fund inflows are also reflected, the net inflow on Monday could exceed $600 million. The U.S. financial regulators' push for an 'Innovation Exemption' for tokenized asset transactions and cryptocurrency trading/market regulations after the failure of the Clarity Act also supported individual investors' sentiment.

Corporate buying also joined in. Strategy resumed BTC purchases for the first time since August, buying $75.7 million worth of Bitcoin. Along with this, it also bought back $174 million worth of STRC perpetual preferred stock. Bitcoin is currently trading at approximately $85,696, significantly above its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) of $75,433, $72,609, and $73,580, respectively. The Moving Average Convergence Divergence (MACD) has crossed above the signal line, and the Relative Strength Index (RSI) has risen to around 70.

For further upside, it is crucial whether Bitcoin surpasses the 78.6% Fibonacci retracement level of $87,476 on a daily closing basis. If this price level is broken, $90,000 is suggested as the next resistance, with $97,024 as an additional target zone thereafter. Conversely, if a correction occurs, the 50% Fibonacci retracement level of $75,233 serves as the primary support, and the 50-day EMA at $75,433 and the 200-day EMA at $73,580 are also presented as major support zones.

The strength of AI-related tokens was even more pronounced. BitTensor surpassed $300, exceeding its 50-day, 100-day, and 200-day EMAs of $235, $230, and $238, respectively. Although the RSI entered the overbought zone at 74, the MACD rose in positive territory, indicating buying dominance. For further upside, the high of $369 on September 13, 2025, is the primary resistance, followed by $539 as the next resistance. In case of a decline, $300 and the 200-day EMA of $238 are key support levels.

FET also showed a strong upward trend, surpassing $0.2000 and its 50-day, 100-day, and 200-day EMAs of $0.1646, $0.1686, and $0.1978, respectively. The MACD showed an upward trend above the signal and baseline, and the RSI recorded 67. On the upside, the 78.6% Fibonacci retracement level of $0.2390 is a major resistance, suggesting approximately 15% further upside potential from the current level. Conversely, in case of a correction, the 200-day EMA of $0.1978 and the 50% Fibonacci retracement level of $0.1855 are considered major support zones.

*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.*