Crypto Overview: Bitcoin tops $85,000 post-CLARITY Act failure – TAO and FET lead gains

Bitcoin (BTC) price trades above $85,000 at press time on Tuesday, maintaining a constructive tone amid positive institutional inflows, Strategy’s first BTC purchase since August, and alternative regulatory expansions following the CLARITY Act's failure. AI tokens such as Bittensor (TAO) and Artificial Superintelligence Alliance (FET) have emerged as top performers over the last 24 hours.

The crypto market builds risk appetite

The broader cryptocurrency market saw a significant recovery over the last 24 hours, driven by Bitcoin’s 6% jump. This recovery is underpinned by the positive institutional inflow of $433.03 million on Friday, which is likely to surpass $600 million on Monday if BlackRock’s IBIT fund posts an influx.

Post-CLARITY Act failure has driven the US financial regulators to grant the “Innovation Exemption” for tokenized assets trading and to propose Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. This reflects an alternative approach to structuring crypto market regulations, boosting retail confidence.

On the other hand, Strategy reported a $75.7 million purchase of Bitcoin, while the original Bitcoin treasury company repurchased $174 million of its STRC perpetual preferred shares. The expansion of its Bitcoin treasury and preferred stock buyback reflects renewed corporate confidence in King Crypto ahead of its potential four-year bull cycle likely to start in October.

Bitcoin could attempt another bullish breakout

Bitcoin hovers around $85,696, maintaining a bullish near-term bias as price holds well above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $75,433, $72,609, and $73,580, respectively.

From a technical perspective, Bitcoin must secure a daily close above the 78.6% Fibonacci retracement level, measured from $97,924 to $57,800, at $87,476. A confirmed breakout above this level could face a barrier at the $90,000 round figure, followed by the Fibonacci anchor at $97,024.

The Moving Average Convergence Divergence (MACD) crosses above its signal line, restarting the positive histogram profile, while the Relative Strength Index (RSI) hovers around 70, hinting at strong but increasingly overbought momentum.

On the downside, initial support is at the 50% retracement level of $75,233, with the 50-day EMA at $75,433 and the 200-day EMA at $73,580 providing deeper trend support.

Bittensor and Artificial Superintelligence Alliance rally

Bittensor trades above $300 on Tuesday, extending a strong bullish phase. The AI token holds well above the 50-day EMA at $235, the 100-day EMA at $230, and the 200-day EMA at $238, hinting at a firmly established uptrend.

Momentum remains robust as the RSI sits in overbought territory near 74, while the MACD stays positive and rising, suggesting that buying pressure still dominates.

The immediate resistance for TAO emerges at the $369 level set by the September 13, 2025 high, followed by the $539 peak recorded on November 1.

On the downside, initial technical support is seen near the $300 psychological level, followed by the 200-day EMA at $238.

FET trades above $0.2000 on Tuesday, holding a clear bullish bias above the 50-, 100-, and 200-day EMAs at $0.1646, $0.1686, and $0.1978, respectively. The advance has carried the token right up to the 50% Fibonacci retracement at $0.1855, measured from $0.2889 to $0.1192.

The MACD line shows a positive trend above zero and the signal line, while the RSI hovers around 67, hinting at strong but increasingly stretched upside momentum.

The 78.6% Fibonacci retracement level at $0.2390 serves as the immediate overhead resistance, projecting a 15% upside potential.

On the downside, initial support is seen at the 200-day EMA near $0.1978, with deeper demand clustered around the 50% retracement at $0.1855.

(The technical analysis of this story was written with the help of an AI tool. Know more.)