Bitcoin Holds Near $80,000 as CLARITY Act Hopes Raise $90,000 Scenario

Bitcoin has been trading sideways near $80,000, and debate around the U.S. CLARITY Act could provide a short-term catalyst for gains.

Cointelegraph reported on May 13 that Bitcoin has traded around $80,000 over the past week, with the 200-day exponential moving average acting as a key resistance level.

Traders are also eyeing a possible near-term retest of the $78,000 to $79,000 range. More than $3 billion in leveraged long positions is concentrated in that zone.

Even so, broader market sentiment is gradually improving. Michaël van de Poppe, founder of MN Capital, said Bitcoin could quickly climb to $90,000 in the short term if the current trend continues and expectations for the CLARITY Act build.

On-chain indicators also suggest investor sentiment is improving. Axel Adler Jr., a contributor at CryptoQuant, wrote that short-term holder loss pressure has remained at 0% for five consecutive days. That indicates recent Bitcoin buyers have, on average, moved out of loss-making territory.

The share of supply held by short-term investors has also fallen to 22.2% of total supply, the lowest level in the past 90 days. Traders view that as a sign that selling pressure from recently bought Bitcoin is easing, increasing the chances of an upside breakout.

Still, analysts are watching near-term resistance. Crypto trader Zord said that after reclaiming $78,983, the 50% Fibonacci retracement level, Bitcoin could face profit-taking near the next resistance zone at $83,400 to $84,600.

Attention is now focused on the U.S. Senate Banking Committee's markup of the CLARITY Act on May 14. More than 100 amendments have been submitted to the committee.

The bill includes provisions covering stablecoin regulation and protections for decentralized finance, or DeFi, developers. Some draft versions also reportedly include restrictions on exchanges offering interest-bearing reward services tied to stablecoins.