Bitcoin Price Prediction: BTC Falls to $83,000, Intensifying Short-Term Volatility in the Cryptocurrency Market

On Thursday, Bitcoin price fell by approximately $85,289, a drop of 4.75%, intensifying short-term volatility in the cryptocurrency market. However, behind this price correction, a series of structural changes indicates that several long-term factors may reshape Bitcoin's supply and demand balance and investor confidence.

Rather than a signal of a market crash, this trend reflects the market digesting regulatory changes, emerging activity in Bitcoin-native DeFi, and renewed accumulation by institutional buyers. For long-term holders, these dynamics are far more important than a single red candlestick.

Senate Agriculture Committee Advances Cryptocurrency Market Structure Bill

Regulatory scrutiny continues to intensify. The U.S. Senate Agriculture Committee narrowly passed a key cryptocurrency market structure bill by a vote of 12 to 11, sending it to the full Senate for consideration. Despite the partisan divide in the vote, this marks a significant step towards a clearer regulatory framework for the digital asset industry.

Previously, Democrats had proposed several amendments aimed at preventing potential conflicts of interest in politically connected cryptocurrency projects and preventing taxpayer funds from flowing to intermediaries. However, these proposals were rejected by Republicans, who argued that any remaining issues could be addressed later. The focus has now shifted to the Senate Banking Committee, which has postponed its own related review process.

While clearer regulatory rules won't immediately eliminate market volatility, they are crucial for institutional investors. Increased regulatory clarity helps reduce compliance risks and facilitates smoother capital allocation decisions, laying a solid foundation for the long-term adoption of Bitcoin.

Bitcoin Price Prediction: BTC Tests $83,000 Support Level, Downtrend Channel Nears Critical Point

The Bitcoin outlook remains bearish, with the price trading near $83,800. The pullback continues after breaking below a clear descending channel on the 4-hour chart. Since reaching a high near $97,500 in January, Bitcoin has fallen to a demand zone between $84,000 and $85,500, which is also the area where it consolidated in late December.

Momentum remains weak. Bitcoin continues to make new lows, constrained by the downtrend line. The recent series of strong red candlestick patterns resembles a three black crows formation, indicating persistent selling pressure. The price is also hovering below the 50-period and 100-period moving averages near $89,500 to $90,500, limiting any upside potential.

However, the downward momentum may be weakening. The RSI indicator is currently around 20, severely oversold, which typically occurs before price stabilization. The long lower shadows appearing near $83,300 to $83,800 suggest that some buyers are entering the market at these levels.

If Bitcoin price remains above $83,000, a rebound to $86,100 and $88,400 is possible. A break below $83,000 could see the price fall to $81,600, and potentially even to $79,800.

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