Over the weekend, Bitcoin pulled back below $70,000 and is now trading around $69,000, making a further major rally for the leading crypto unlikely for now.

Meanwhile, White House spokesman Patrick Witt said trillions of dollars of institutional capital are waiting to enter the crypto market. In his view, the main obstacle for many investors is the lack of clear regulatory rules.

The expected passage of the CLARITY Act is seen as paving the way for significant investments from large financial institutions. These firms, traditionally cautious about new and lightly regulated markets, may view the crypto industry as a more predictable and safer environment under clear rules. That would unlock vast pools of capital that are currently on hold.

Implementing clear regulatory frameworks, as envisioned by CLARITY, is critical for the development and legitimization of the crypto market. As I have often noted, the law aims to remove the uncertainty that has long held back both institutional investors and ordinary consumers. Establishing legal rules will reduce risks related to fraud and market manipulation and thereby increase trust in digital assets.

However, the political implications of passing the law before Trump's midterm elections could be significant. Crypto regulation is a topical issue, and progress here could be showcased by politicians as proof they can address modern economic challenges.

Ultimately, the CLARITY Act is viewed as a catalyst that could trigger not only greater investment flows but a fundamental transformation of the crypto industry, attracting new capital and supporting market growth overall.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $68,900, which would open a direct path to $72,100 and then to $74,600. The farther target is around $77,300; a breakout above that would indicate attempts to restore the bull market. In case of a decline, buyers are expected at $65,600. A move below that area could quickly push BTC toward $62,600. The far downside target is $60,100.

Ethereum

A clear hold above $1,987 would open a direct path to $2,078. The farther target is around $2,169; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $1,907. A move below that area could quickly push ETH toward $1,819. The far downside target is $1,724.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.