BEARISH 📉 : Bitcoin slides below $85,000 amid market sell-off and liquidations

Bitcoin continues its downward trend, briefly falling below $85,000 despite progress in US crypto legislation not boosting market sentiment.

Crypto Market Dynamics

The Senate Agriculture Committee advanced the CLARITY Act to establish a clearer regulatory framework for digital assets, yet it failed to support short-term prices.
Market responded with a sell-off, causing Bitcoin to drop by $2,700 and triggering liquidations totaling $356 million in long positions.
Total liquidations across the crypto market reached $803 million in the last 24 hours, with $693 million in long and $109 million in short liquidations.

The CLARITY Act aims to clarify the roles of CFTC and SEC in crypto regulation. Lawmakers need to merge sections from the Senate Banking Committee.
Analyst Rekt Capital notes that Bitcoin must keep above $86,000 to avoid turning it into resistance. A weekly close above this level is essential to prevent further drops.
A break below $86,000 could lead to testing the macro triangle bottom at $82,500, indicating increased bearish momentum if breached.

Bitcoin briefly recovered to $85,135 but remains below critical levels, making upcoming price action crucial for determining its direction.