Bitcoin is entering a pivotal moment as the US Congress kicks off “Crypto Week,” where lawmakers will debate and vote on landmark cryptocurrency legislation. The decisions made this week could shape the regulatory framework for digital assets in the United States for years to come—and investors are watching closely.
Meanwhile, Bitcoin is holding above critical support levels after recently setting a new all-time high of $123,200 and retracing to key demand near the $116,000–$118,000 zone. Despite the pullback, the broader trend remains bullish, with the price structure intact and support levels being defended by buyers.
While this might appear alarming, such events often precede a continuation of bullish price action, especially in strong uptrends. By shaking out uncertain holders, the market may now be positioned for healthier, more sustainable growth, driven by long-term conviction rather than speculative noise.
However, broader uncertainty remains. On Tuesday, all three major crypto bills were rejected in the US Congress during the opening of “Crypto Week,” raising concerns over the lack of regulatory clarity for digital assets. This unexpected legislative setback could fuel short-term hesitation from institutional investors awaiting clearer rules of engagement.
Despite these headwinds, Bitcoin’s fundamentals and on-chain metrics remain strong. Exchange reserves are low, long-term holder supply remains steady, and network activity continues to rise. Moreover, the recent uptick in retail demand and altcoin participation points toward a potential expansion phase, not just for Bitcoin, but for the broader crypto market.
The 8-hour Bitcoin chart shows that BTC is holding up well after a volatile drop from its all-time high of $123,200. The price retraced sharply to the $115,700 level but found immediate support, printing a bullish wick and now trading around $118,800. Despite the correction, the structure remains bullish, with higher lows and higher highs still intact.
Importantly, the 50, 100, and 200-period SMAs (Simple Moving Averages) are aligned to the upside, confirming a strong uptrend. BTC is also holding well above the key support level of $109,300, previously a major resistance zone, which now acts as a crucial demand area. If bulls manage to maintain momentum and reclaim the $120,000 zone, a retest of all-time highs is likely.
Volume during the drop spiked significantly, suggesting either panic selling or a well-executed shakeout of weak hands. However, the fast recovery indicates strong underlying demand and continued conviction among long-term holders.
Featured image from Dall-E, chart from TradingView
