22.01.202610:33 Forex Analysis & Reviews: Bitcoin able to recover

Despite heavy selling pressure, Bitcoin managed yesterday to recover back to the $90,000 area, breaking a string of negative trading days. Support came from Trump's statements on Greenland and the decision not to impose trade tariffs on certain EU countries.

Meanwhile, with everything stalled in the US Senate Banking Committee, the Senate Agriculture Committee is expected to publish a new text of the crypto bill in the coming days, with a vote anticipated as early as next week.

The CLARITY Act is expected to provide clearer definitions for different types of digital assets, aiming to distinguish securities from commodities — a key sticking point in US crypto regulation. The bill will also clearly allocate regulatory oversight.

Many in the crypto industry express concern about how the new rules will affect decentralized finance. It remains unclear how the CLARITY Act will regulate DeFi protocols and whether they can meet new requirements. This issue is hotly debated because strict rules could stifle innovation in the fast?growing sector.

The bill is also expected to address stablecoin regulation, which has attracted regulators' attention in recent years because of concerns about backing and stability. The CLARITY Act is likely to set requirements for stablecoin issuers to ensure transparency and consumer protection.

However, given disagreements and unresolved issues, the future of the CLARITY Act remains uncertain. Even if the Senate Agriculture Committee approves the bill, it must still pass the full Senate. Nonetheless, publishing the bill text and the upcoming vote are important steps toward creating a clear regulatory framework for digital assets in the US.

Trading recommendations

Bitcoin

Buyers are currently aiming a return to $90,500, which opens a direct path to $92,100 and then to $94,000. The far target is around $95,800; breaking that would signal attempts to revive the bull market. In case of a decline, buyers are expected at $88,700. A move back below that area could quickly push BTC toward $86,300. The far downside target is $83,200.

Ethereum

If ETH settles above $3,053, this opens a direct path to $3,129. The far target is around $3,192; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $2,970. A move back below that area could quickly push ETH toward $2,887. The far downside target is $2,789.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.