BTC continues consolidation within channel

[Ben Graham]

While Bitcoin continues to consolidate within the channel, certain prerequisites for its future growth are forming.

Yesterday, Commodity Futures Trading Commission Chairman Michael Selig said that the crypto market structure bill is on the verge of being signed. Selig's comments, highlighting the president's stance and the prospect of imminent passage of the CLARITY bill, could signal a potential end to an era of enforcement-led regulation that has often been unpredictable and unnerved market participants.

Selig said that, thanks to the president's position, they stood on the threshold of the CLARITY bill becoming law and that the era of crypto regulation by enforcement was coming to an end, stressing the importance of the moment. He also expressed confidence in the United States' status as the world's crypto capital while emphasizing the need to preserve that leadership.

According to the CFTC chief, the main objective of the CLARITY bill is to establish clear and stable rules of the game for the crypto industry. Selig said that it was important not merely to introduce regulation but to enshrine it in legislation to avoid scenarios in which adopted rules could be reversed or materially altered in the future, and that doing so would provide predictability for companies operating in the market, support further growth and development, and strengthen the United States' position as a global leader in this fast-evolving sector.

The official said the document is intended to be brought to a conclusion in the near term.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently targeting a return to $68,900, which would open a direct path to $72,100 and then to $74,600. The extended target is the peak near $77,300. A breakout of that level would indicate attempts to restore the bull market. On the downside, buyers are expected at $65,600. A drop below that area could quickly push BTC toward $62,600, with a further downside target near $60,100.

Regarding the technical picture for Ethereum, clear consolidation above $1,998 would open a direct route to $2,078. The extended target is the peak near $2,169. Breaching that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $1,907. A move below that zone could rapidly send ETH down to about $1,819, with a farther downside target near $1,724.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.

The material has been provided by InstaForex Company - www.instaforex.com