Bitcoin advanced 8.39% to $71,519 on Thursday after President Donald Trump called on Congress to pass the Clarity Act, a proposed bill aimed at defining cryptocurrency as either a security or commodity and clarifying regulatory jurisdiction between the SEC and CFTC. The legislation’s introduction coincided with a sharp intraday rally that pushed Bitcoin from $65,982 to a session high of $72,496, marking a single-session gain of more than $6,500.
The surge pushed Bitcoin’s daily momentum indicators into extreme territory. The 14-day Relative Strength Index (RSI) rose to 77.8, while the Stochastic oscillator reached 89.8 and the StochRSI hit 100.0, all signaling overbought conditions. The Commodity Channel Index (CCI) climbed to 333.2, further underscoring stretched valuations. The Moving Average Convergence Divergence (MACD) remained bullish at 896.9, and the Average Directional Index (ADX) stood at 34.8, confirming the development of a strong trend.
Despite the daily extremes, broader timeframe indicators suggest caution. The weekly MACD remained negative at -4,999, though the weekly signal had turned bullish. The monthly RSI held at 47.7, reflecting a neutral stance, while Bitcoin’s price remained below both the 10-period simple moving average at $73,533 and the exponential moving average at $74,610.
Technical resistance levels now cluster between $71,547 and $77,391, with the daily R1 pivot at $71,547, daily R2 at $73,720, and daily R3 at $77,391. On the downside, key support is identified at $67,876, followed by $65,703 and $62,032. The last time daily RSI exceeded 75 in July, Bitcoin subsequently pulled back by 12% over two weeks, a pattern that traders are monitoring closely.
The Clarity Act faces bipartisan opposition, with Democrats and some Republicans demanding additional language to prohibit political officials from profiting from cryptocurrency ventures. The bill’s progress remains uncertain as lawmakers weigh regulatory clarity against ethical concerns.
