Bitcoin’s struggle below $80,000 continues and the asset is currently facing the weekly MA50.
This is a major resistance that it needs to reclaim so BTC can continue building on the impressive August breakout.
Weekly MA50 Test
In the latest market update, Doctor Profit flagged multiple attempts made by Bitcoin around the MA50 in early 2023 before the eventual breakout. According to him, the comparison does not mean that every candle from 2023 must repeat or that it tells us whether another correction comes first.
He reiterated that $78,500 had broken as resistance but had not been confirmed as support. $71,000 is an important level in his framework. Doctor Profit said it remains his strongest support reference and that the market could still revisit it before recovering toward higher levels.
Bitcoin needs to reclaim the weekly MA50 before the $82,500-$83,000 region becomes the major breakout area in his framework, which could then open the path for $88,000. However, the move toward this level may take time, rather than playing out within this week.
“So anyone expecting an immediate, uninterrupted breakout was getting ahead of the chart. Expecting resistance to break eventually is not the same as expecting every attempt to succeed.”
Key Events This Week
A new version of the CLARITY Act is now on the table as Senate Republicans make a final push for Democratic support ahead of the procedural vote. The 635-page bill brings in tougher ethics rules that would force public officials to sell major crypto holdings or place them in a blind trust. It also gives both the DOJ and state attorneys general the power to enforce those rules. Beyond that, the latest changes cover miners and validators, stablecoin risks, and conflicts of interest across crypto markets.
The analyst expects the legislation to be signed by Donald Trump by the end of the year and considers progress toward a workable framework as bullish for BTC.
Federal Reserve’s decision is due September 16, following the September 15-16 FOMC meeting, and is also one of the several economic events taking place this week. The market is pricing in an 85.5% probability of a quarter-point hike and a 14.5% probability of rates remaining unchanged, with effectively no probability assigned to a cut. For Bitcoin, Doctor Profit’s personal view is that the Fed should leave rates as they are rather than make a change.
More on the upcoming events and the current market state can be found in our dedicated video below.
The post The Weekly MA50 Is Holding Bitcoin (BTC) Back – Here Are the Levels to Watch appeared first on CryptoPotato.
Source: https://cryptopotato.com/the-weekly-ma50-is-holding-bitcoin-btc-back-here-are-the-levels-to-watch/
