Bitcoin price slips below $95K as CLARITY Act stalls, Dash leads altcoin gains

Bitcoin price lost a key support level after a failed breakout attempt past $97,000.

Risk sentiment faded as key legislation stalled in the US and short-term traders started booking profits.

Total crypto market cap slipped below the $3.3 trillion mark for the second time this month, having dropped over 2%.

The crypto fear and greed index dropped 4 points in the past 24 hours to enter the lower bounds of neutral territory at 50.

Altcoins, likewise, followed Bitcoin’s lead, with most retracing gains that had built up earlier in the week.

A few outliers managed to post modest profits, but broader sentiment remained cautious.

Why is Bitcoin price down today?

After failing to break past the two-month high near $97,000, Bitcoin slipped back below the $95,000 support zone as sentiment weakened around stalled regulatory progress in the United States. 

Attention turned to the Market Structure Bill, widely referred to as the CLARITY Act, after its expected Senate markup was delayed following Coinbase’s decision to withdraw support.

The setback quickly fed into market pricing. Prediction odds for the bill passing this year fell from 63% to 49%, adding another layer of uncertainty for investors who had been positioning for clearer regulatory direction. 

Coinbase CEO Brian Armstrong said the bill risked undermining the tokenisation sector, interfering with stablecoin reward structures, encroaching on user privacy within DeFi, and weakening the CFTC’s role as a regulator. 

At the same time, profit-taking accelerated after Bitcoin’s strong run earlier in the week. 

Several of the day’s weakest performers were among the top gainers just days ago, pointing to short-term traders locking in returns rather than fresh selling driven by new bearish catalysts.

From a technical perspective, momentum cooled as Bitcoin once again failed to sustain upside traction toward the $100,000 level. 

Further, losing the $95,000 area later in the day shifted short-term bias lower and reduced trader confidence, particularly among leveraged participants who had positioned for continuation higher.

Meanwhile, over the past 24 hours, total crypto liquidations climbed to $256.79 million, with long positions accounting for roughly $203.75 million of that total.

Bitcoin alone made up about $75.88 million in liquidations, showing how heavily long exposure was concentrated near recent highs.

The bulk of forced exits occurred as prices slipped through key intraday levels, amplifying downside moves as stops were triggered.

Will Bitcoin price go up?

Analysts broadly view the pullback as a corrective phase rather than a trend reversal.

Bitcoin’s move to a two-month high earlier this week left the market extended in the short term. 

While on-chain data continues to show accumulation by larger holders, smaller retail participants appear to be taking profits, contributing to short-term softness as the market waits for a clearer macro or regulatory catalyst.

For now, Bitcoin bulls need to defend the $95,000 psychological area, which is acting as a pivotal pivot point for short term price action.

If the asset fails to reclaim this level quickly, the focus shifts toward deeper liquidity pools.

Market analysts are keeping a close watch on the $91,000 to $92,000 range, which served as a reliable base during the early January climbs. 

A break below that could open the door for a “liquidity hunt” toward the $88,000 zone, where institutional buyers have historically stepped in to absorb selling pressure.

The immediate trajectory depends largely on whether the market can digest the recent legislative friction. 

While the delay of the CLARITY Act created a temporary vacuum of confidence, the underlying demand remains strong. 

This is evident across Spot ETF inflows, which have shown resilience even during this pullback, attracting over $1.7 billion in the past few days alone. 

This means that bigger players are treating these dips as accumulation opportunities rather than a reason to exit.

To regain a truly bullish posture, Bitcoin needs to clear the $98,000 resistance. This level represents the average entry price for many short-term holders. 

Reclaiming it would turn those underwater positions back into profit, reducing the urge to sell on every bounce.

Until then, investors should expect a period of range-bound trading between $90,000 and $96,000 as the market awaits fresh macro data.

Bitcoin upside remains in play

Some analysts, however, are completely downplaying the downside risks

On X, the pseudonymous market analyst CryptoBoss characterised the current dip as a textbook retest of a key support area.