Bitcoin is in the focus of investors as the CLARITY Act bill, which is expected to bring new regulations for the crypto market in the USA, will be voted on Thursday. Both the improvement in market conditions and the decrease in short-term sales pressure pave the way for an upward movement in Bitcoin, which has fluctuated at the level of 80 thousand dollars in the last week.
Price Movements at the 80 Thousand Dollar Threshold
Bitcoin was traded in the $80,000 range throughout the past week. The 200-day exponential moving average is still a strong technical resistance. It is stated that over 3 billion dollars of leveraged long positions have been accumulated in the region between 79 thousand and 78 thousand dollars. This reveals that the price may retest this range for a short time and then attempt a new break above the 200-day moving average.
Data tracked via on-chain, that is, blockchain, also sends positive signals. Market researcher Axel Adler Jr. points out that short-term investors’ loss pressure remained at zero for five consecutive days. This metric measures whether investors who bought recently are currently holding Bitcoin below the purchase price.
The share of short-term investors in the total Bitcoin supply decreased to 22.2%, the lowest level in the last 90 days. This shows that the amount of Bitcoin sold in the short term has decreased and an environment may be created for a new rise.
But some analysts also point to possible resistance points. Crypto trader Zord highlights that Bitcoin may face strong resistance between $83,400 and $84,600 after retracing the 50% Fibonacci retracement level. It is predicted that the rise may lose momentum in case of profit taking in this region.
CLARITY Act and Market Dynamics
The CLARITY Act, which is being discussed in the US Congress, aims to introduce clearer regulatory rules for cryptocurrencies and the stablecoin market. Members of the Senate Banking Committee submitted more than 100 proposed amendments to the bill before Thursday’s vote. A significant portion of these changes cover items related to stablecoins, crypto developers, and ethics.
Crypto exchanges and platforms could be prevented from offering stablecoin rewards similar to interest-bearing deposits at traditional banks, according to draft legislation leaked on Monday.
Japan-based research organization XWIN Japan states that the regulation in question aims to distinguish between stablecoins used in payments and crypto products similar to bank deposits. This approach is considered important in eliminating the gray area in the sector.
Rapidly Increasing Use of Stablecoins
Stablecoins continue to constitute the majority of the main money flow in the ecosystem. In recent years, there has been a significant increase in the number of active wallets of ERC-20 based stablecoins. According to information provided by XWIN Japan, wider adoption of stablecoins and increased interest in blockchain-based financial products may support investment in Bitcoin in the long term.
