23.01.202610:36 Forex Analysis & Reviews: Disagreements persist over CLARITY

Bitcoin remained near $90,000 yesterday, failing to gain meaningful support.

Meanwhile, despite revisions to the text, divisions persist over the CLARITY market structure bill. The Senate Agriculture Committee released an updated draft yesterday, signaling attempts to reach a compromise and accommodate differing views. However, despite the adjustments, key issues remain unresolved.

The main changes extend the CFTC's authority over digital assets, a step toward tighter oversight of the sector. Notably, controversial sections that had drawn the greatest opposition were removed from the new version, including provisions related to the status of certain blockchain developers and some AML requirements. That reflects an effort to avoid unduly heavy-handed rules that could stifle innovation and to ease the path for technology adoption.

Outstanding questions include the regulation of DeFi, the division of responsibilities between the CFTC and the SEC, and the treatment of stablecoins. DeFi's decentralized nature creates particular challenges for regulators. A clear allocation of authority between the CFTC and the SEC is necessary to prevent duplicated functions and regulatory uncertainty. Stablecoin regulation requires special attention, given its potential implications for financial stability. Many market participants fear that the final bill could place primary oversight with the SEC, which could significantly complicate development in the crypto industry.

The bill is now the subject of active debate and requires further drafting to strike a balance between investor protection and support for innovation in the crypto space. Continued discussion and compromise appear essential to create an effective and balanced regulatory framework for the market.

Notably, CLARITY is widely regarded as the prospective main driver for the crypto market.

Trading recommendations:

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

As for Ethereum, a clear consolidation above $2,970 would open a direct route to $3,050. The extended target is the peak near $3,129. Surpassing that level would strengthen bullish sentiment and renew buyers' interest. If ETH falls, buyers are anticipated at $2,887. A return below that zone could rapidly send ETH down to about $2,789. A far downside target would be around $2,684.

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.