Bitcoin has taken center stage for investors this week as attention turns to Thursday’s vote in the United States on the CLARITY Act, a bill that could set new regulations for the crypto industry. Over the past week, Bitcoin has been trading around the $80,000 level, with improving market conditions and a recent drop in short-term selling pressure laying the groundwork for a potential upward move.
Price movements around the $80,000 threshold
Throughout last week, Bitcoin remained within the $80,000 range. The 200-day exponential moving average continues to provide significant technical resistance. Data indicates that more than $3 billion in leveraged long positions have accumulated between $79,000 and $78,000, suggesting Bitcoin could briefly retest this range before making another attempt to break above the 200-day moving average.
On-chain data is offering further positive signals. Market analyst Axel Adler Jr. has highlighted that the loss pressure for short-term investors has stayed at zero for five consecutive days. This metric gauges whether recent buyers are currently holding Bitcoin below their purchase price.
The share of total Bitcoin supply held by short-term investors has dropped to 22.2 percent, its lowest level in 90 days. This indicates reduced short-term selling activity and a possible setup for a renewed rally in the near term.
However, some analysts are also flagging critical resistance levels. Crypto trader Zord has noted that after regaining the 50 percent Fibonacci retracement level, Bitcoin could face strong resistance in the $83,400 to $84,600 range. If profit-taking emerges here, any gains might lose momentum.
CLARITY Act and market dynamics
The CLARITY Act, currently debated in the US Congress, seeks to introduce clearer regulatory rules for cryptocurrencies and the stablecoin market. Ahead of Thursday’s key vote, members of the Senate Banking Committee have proposed over 100 amendments to the bill. Many of these changes address stablecoins, crypto developers, and ethical considerations.
A leaked draft of the bill published Monday suggests crypto exchanges and platforms may be barred from offering stablecoin rewards similar to interest-bearing deposits at traditional banks.
Japan-based research group XWIN Japan reports that the proposed regulation aims to distinguish between payment-oriented stablecoins and crypto products that resemble bank deposits. This approach is seen as a significant step toward eliminating regulatory grey areas in the sector.
Surging stablecoin adoption
Stablecoins continue to account for the majority of capital flows within the ecosystem. In recent years, the number of active wallets for ERC-20-based stablecoins has surged sharply. According to XWIN Japan, rising adoption of stablecoins and growing interest in blockchain-based financial products could, in the long run, support greater investment in Bitcoin.
