Clarity Act Uncertainty Pressures Bitcoin as Altcoins Test Key Levels

The main pressure on crypto right now is the Clarity Act. Prediction market odds of passage have dropped to 37%, down from 53% the previous day, a decline of 16 percentage points. That appears to be contributing to the pullback in Bitcoin (BTC).

Bitcoin recently broke above the upper boundary of its parallel channel. On the 2-hour chart, the pullback came within $100 of retesting that breakout area. That may have completed the return to former resistance, giving Bitcoin a chance to move higher, but the market is not out of danger yet.

Democrats and Republicans are still negotiating the legislation. One provision would prevent presidents from issuing meme coins, but it would not take effect until January 20, 2029. The bill may also require 60 votes unless it is attached to another piece of legislation. Until that becomes clearer, Bitcoin and the broader crypto market will remain sensitive to every change in the odds.

Ethereum (ETH) is trying to break through a descending resistance line connecting the late January highs with the candle bodies around May 11. The next important target is $2,000. Ethereum interacts with that level repeatedly, often producing long upper wicks followed by pullbacks. It needs to move above $2,000 and turn it into support before a stronger bullish move becomes more convincing.

XRP (XRP) has broken out of a falling wedge and gained nearly 10%, specifically 8.88%, from the recent local low. The next resistance area is near $1.18, or approximately $1.179. Price has been rejected from that region before, so another push lower remains possible.

Cardano (ADA) has also moved above resistance, although a retest of the breakout area would be normal. It may be forming the early stages of an inverse head and shoulders pattern, with a projected target near $0.251. That lines up closely with the psychological resistance at $0.25. The February low also produced candle body closes near $0.245, making this a meaningful resistance zone.

Hyperliquid (HYPE) remains under heavy selling pressure. The 1-hour relative strength index is beginning to stabilize, but the bullish divergence is choppy. A previous, cleaner setup produced only a 4% bounce. The price has already produced one bounce followed by a smaller second bounce, which increases the risk of another move lower. The more attractive accumulation area remains near the bottom of the parallel channel.

Zcash (ZEC) has returned to a descending trend line that has acted as both support and resistance, but the volatility is extreme. It recently fell 60% in two days. A previous 4-hour bullish divergence produced a bounce of approximately 60%, but that confirmation is not present now. A simple trend line touch is not enough. I would want another lower price low, a higher low on the 4-hour relative strength index, and two or three supporting factors creating roughly 70% odds of a bounce.

Hedera (HBAR) produced a rally of more than 10% after a bullish divergence on the daily relative strength index. From the middle of the current range, it has roughly 20% upside before reaching resistance and approximately 12% downside before reaching support. That is not an attractive entry because the price is sitting between the two important levels.

Chainlink (LINK) is approaching the target from its inverse head and shoulders breakout. That target also sits near a descending trend line, so resistance may be developing. Momentum is slowing, with each recent green candle becoming smaller. The structure remains constructive above horizontal support, but entering near the measured target carries more risk.

SWEAT Economy (SWEAT) returned directly to neckline support, where the position was increased by 25%. The second entry came around 8:00 AM after an earlier opportunity near 3:00 AM EST was missed. The trade is up approximately 2%, with the main target near the top of the range for a gain of roughly 5%. That area has repeatedly acted as a resistance.

The daily relative strength index still looks constructive, but the 4-hour momentum is beginning to weaken. That makes protecting profits more important as the price approaches the target. The market is offering setups, but the best trades still come from waiting for clear support, demanding multiple confirmations, and taking profits when resistance is directly in front of you.