22.01.202614:10 Forex Analysis & Reviews: Bitcoin stabilizes

Although Bitcoin stabilized after yesterday's volatility, the chart suggests that traders are not rushing to buy at the current $90,000 price.

Traders may need a fresh trigger. That trigger, according to prominent US crypto figure David Sacks, could be passage of the CLARITY Act market?structure bill, which many US banks are waiting for. Sacks expects large institutions to enter the market more actively only after the law is approved, a move that could ignite a new bull cycle across the crypto market.

Passage of the CLARITY Act carries risks. Excessively strict rules could choke off innovation and scare off small investors, concentrating the market in the hands of large institutions. Regulators must strike a balance that protects investors without stifling industry development.

Other potential triggers exist as well, including broader adoption of blockchain across industries, growing interest in DeFi platforms and the rollout of AI solutions.

It is not certain that passage of the CLARITY Act would guarantee a fresh bull market. Still, it would represent an important step toward a more transparent, regulated environment, which would be broadly positive for the market's long?term prospects.

Trading recommendations:

Buyers of BTC are targeting a return to $90,500, which would open a direct path to $92,100 and then to $94,000. The farther target is the peak near $95,800. A breakout of that level would signal attempts to restore a bull market. On a setback, buyers are expected at $88,700. A drop below that area could quickly push BTC toward $86,300. The far downside target would be around $83,200.

As for Ethereum, clear consolidation above $3,053 would open a direct route to $3,129. The farther target is the peak near $3,192. Breaching that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $2,970. A return below that zone could quickly send ETH down to about $2,887. The far downside target would be around $2,789.

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.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.