An important message for our US visitors: Binary options trading in the US is only permitted on exchanges regulated by the CFTC. US regulators have warned about the risks of using offshore platforms, which are not authorized. Crypto.com is a top-rated, CFTC-regulated platform with binary and event contracts.

Major Bitcoin Roadblock Removed? Clarity Act Has New Wings

Published:

The $65K breakout faces its first retest as technicals begin to improve

This week, Bitcoin managed to climb above the key resistance at $65K and reached a high at $66,900, all on the back of positive news surrounding the Clarity Act. Some of the gains were erased later in the week due to increased military action in the Middle East.

Stablecoin yield was a major friction point between crypto companies and banks. It was also the main reason that kept the Clarity Act from advancing. Once that was settled via a compromise between the two sides, ethics provisions became the main problem for politicians.

For a long time, Senate Democrats refused to back the bill unless it clearly bars the president, senior officials, and their families from profiting off crypto endeavors. This stalemate kept the bill from advancing, but now it seems this hurdle has been overcome. On Monday, President Trump agreed to the ethics rules that were demanded by the Democrats, which means that the Clarity Act could become law very soon.

The draft of the ethics language has not been made public yet, and a vote date has not been set. However, the crypto market responded very positively, with Bitcoin and other major coins rallying substantially. Also, ETF activity is back, with Bitcoin ETFs adding almost $1 billion in 7 days of consecutive inflows, according to data from Coinglass.

The overall sentiment is shifting towards optimism, and institutional interest is growing again. From this point on, any positive news on the Clarity Act could send Bitcoin above the $71K level and above the three Moving Averages, possibly marking the end of the downtrend.

Chart Analysis – BTC/USD

After reaching a high of $66,900, Bitcoin retreated in the $65K area to re-test the broken level. This type of re-test of a recently broken level is a normal occurrence, and if the price bounces higher, $65K will become a strong support.

In a bullish scenario, the first major hurdle for the bulls will be the long-term bullish trend line that capped the price since the All-Time High (ATH) at $126K, reached in October 2025. A successful break of this line would bring in additional buyers and would open the door for a trend reversal.

The 100-day and 200-day Moving Averages are still above the price, indicating a downtrend. They will act as dynamic resistance, but Clarity Act progress could send Bitcoin above them, turning the lines into support.

Bitcoin technical analysis chart showing a breakout above the $65K resistance, a retest of the new support, the 100-day and 200-day moving averages overhead, and the long-term bearish trend line near the next resistance.

Bitcoin retests the $65K breakout after rallying on Clarity Act optimism, with traders watching whether the new support will hold and pave the way for a move above the long-term trend line and key moving averages.