VT 
Crypto markets started the week on a positive note, driven by easing trade tensions and fresh progress on US regulation. As lawmakers work to clarify the legal status of digital assets, investor confidence is improving, setting the stage for potential short-term gains.
Bitcoin up on hopes of easing regulation
Bitcoin kicked off the week on a positive note, climbing 0.8% to $119,026, according to CoinDesk.
The rally comes as global trade tensions show signs of easing, and the US makes strides in establishing clearer cryptocurrency regulations.
Meanwhile, Ether rose 3.3% to $3,890, XRP advanced 2.6% to $3.27, and Solana gained 2.7% to reach $192.21.
In broader markets, equity futures edged higher – S&P 500 futures were up 0.3%, and Nasdaq futures rose 0.5%.
Much of Bitcoin’s recent support has been linked to improving global sentiment following President Donald Trump’s announcement of a 15% base tariff on EU imports.
While the new measure maintains certain trade limitations, it has largely been perceived by investors as a stabilising move – particularly for risk assets like cryptocurrencies.
Additionally, progress on US crypto regulation has further boosted market confidence. The Genius Act – now enacted into law – provides formal recognition of stablecoins as legitimate financial instruments pegged to traditional fiat currencies.
More critically, the House passed the Clarity Act, a long-awaited bill aimed at defining whether cryptocurrencies are to be treated as commodities or securities.
This legal clarity is expected to attract increased interest from institutional investors who have remained on the sidelines due to regulatory uncertainty.
Technical analysis
Bitcoin has entered a consolidation phase after reaching a recent intraday high of $119,800.64.
Despite initial bullish momentum, the price has since lost steam and is now hovering just below the 10- and 30-period moving averages on the 15-minute chart.
Picture: BTC/USD retraces after testing $119,800 resistance, as seen on the VT Markets app.
A bearish crossover between the 5- and 10-period moving averages beneath the 30-MA signals a decline in upward strength.
The MACD has also turned negative – its main line has dipped below the signal line, and the histogram is growing increasingly bearish. These signals suggest growing downward pressure.
BTC continues to test a key support zone around $118,700, which has so far held firm. However, a decisive break below this level could trigger a further drop towards $118,200.
For bulls to regain control, the price would need to reclaim $119,800 with strong volume, ideally confirmed by a bullish MACD crossover.
Short-term forecast: Cautious optimism
Bitcoin’s ability to hold above the $118,700 support level remains a key factor in the near-term outlook.
Should this level continue to provide a solid floor, the price may attempt another push toward the psychologically significant $120,000 mark.
However, the path upward appears less certain, as short-term technical indicators are showing signs of fatigue.
The MACD is trending lower, and moving averages on the intraday chart are beginning to flatten – both signals suggesting that bullish momentum is weakening.
While a breakout above $120,000 is still within reach, any move higher is likely to be slow and methodical rather than explosive.
Traders and investors may remain cautious until there is greater clarity on the regulatory front. Much will depend on how the Senate responds to the Clarity Act when it reconvenes.
A supportive stance could reignite market enthusiasm, especially among institutional players who have long awaited a definitive legal framework.
Until then, BTC may continue to trade within a tight range, with sentiment fluctuating based on macroeconomic news and policy signals from Washington.
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