Bullish view
- Buy the BTC/USD pair and set a take-profit at 100,000.
- Add a stop-loss at 90,000.
- Timeline: 1-2 days.
Bearish view
- Sell the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 100,000.
Bitcoin price rebounded and reached a high of $94,400, its highest level since January 5, after a Senate committee published the text of the CLARITY Act and after the core US inflation retreated. The BTC/USD pair has jumped by over 17% from its lowest level in November.
CLARITY Act and SCOTUS Decision on Tariffs
The BTC/USD pair rose as market participants cheered the potential clarity in the crypto industry after the Senate Banking Committee published the text of the CLARITY Act.
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This bill, which now moves to the markup stage on Thursday, will separate the roles between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The latter will be given more duties, which is seen as a good thing for the industry.
Bitcoin price also rose as exchange-traded funds inflows rose, a sign that institutional demand was returning. Spot Bitcoin ETFs have added millions of dollars worth of assets this week, a big reversal from last week's outflows.
Meanwhile, a report by the Bureau of Labor Statistics showed that the core Consumer Price Index (CPI) dropped in December, a trend that may continue in the coming months now that energy prices and mortgage rates have continued falling.
Lower inflation is usually favorable for Bitcoin as it raises the possibility that the bank will embrace a more dovish tone. Some Fed officials, like Stephen Miran, Raphael Bostic, and Anna Poulson, will talk and share their opinions on the recently released macro data.
The other key catalyst for the BTC/USD pair will be the upcoming ruling of Donald Trump's tariffs by the Supreme Court. A ruling to end these tariffs, and a possible refund, will be bullish for the crypto market because of the impact on inflation.
BTC/USD Technical Analysis
The daily timeframe chart shows that the BTC/USD pair has been in a strong uptrend in the past few days, moving from a low of 80,465 in November to the current 94,330.
It has moved above the 50-day Exponential Moving Average (EMA), a highly bullish sign. Also, it has formed an ascending triangle pattern, which is made up of a horizontal resistance and an ascending trendline.
Therefore, the triangle pattern points to more gains in the near term, potentially to the key resistance level at 100,000.
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