Bullish view
Buy the BTC/USD pair and set a take-profit at 80,000.
Add a stop-loss at 75,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 80,000.
Bitcoin price jumped and approached the crucial resistance level of $80,000 after President Donald Trump accepted to the ethical part of the CLARITY Act. The BTC/USD pair was trading at 77,825 on Tuesday as focus now shifts to the upcoming Federal Reserve interest rate decision.
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Bitcoin Price Steady Ahead of the CLARITY Act
The BTC/USD pair moved sideways after President Donald Trump said that he supports the ethical parts of the CLARITY Act. The ethical parts bar politicians, including the president, from launching tokens.
After that, odds that the bill will become law this year have jumped on popular prediction platforms like Polymarket and Kalshi. A crucial Senate committee will vote for the bill before being taken to the full senate. This will still be a difficult bill since it will need 60 votes in the senate.
The CLARITY Act aims to solve some of the biggest challenges in the crypto industry. For example, it aims to simplify how the industry is regulated by bringing most of the work to the CFTC from the Securities and Exchange Commission (SEC).
The next important catalyst to watch will be the upcoming Federal Reserve interest rate decision on Wednesday. This will be a closely-watched decision in which the Fed is expected to hike rates by 0.25%. The most recent data showed that the US created over 162k jobs, while the unemployment rate remained above the 2% target.
US inflation is expected to remain at an elevated level for a while since crude oil prices have remained above the support level of $100. This performance is happening as the US-Iran war continues, with the Strait of Hormuz being closed.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has remained inside a narrow range in the past few weeks. This consolidation is happening after it peaked at $82,183, a notable level that coincided with the highest point in May this year. The pair has remained above the 50-day moving average and the key support level of $75,993, its lowest level on August 3.
There are signs that the coin has formed a bullish flag pattern, a common continuation sign. Therefore, the most likely scenario is where it continues rising as bulls target the key resistance level of 80,000. On the flip side, a drop below the support level of 75,993 will invalidate the bullish view.
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