Bitcoin is poised for a pivotal week, with two major developments capable of reshaping its trajectory. A critical procedural vote on the "Clear Act" and the Federal Reserve's upcoming policy decision stand out as the primary catalysts that could influence market direction. Despite hotter-than-expected U.S. inflation data and rising oil prices pushing rate hike expectations back toward a hawkish stance, Bitcoin has demonstrated notable resilience over the past several weeks.

Last month, Bitcoin experienced a powerful rally, delivering its best three-day gains and strongest weekly performance since 2023, which finally put an end to a prolonged period of market stagnation. Since that surge, however, the cryptocurrency has entered a sideways trading range just below the $80,000 mark. Should the "Clear Act," a regulatory bill for the crypto market, successfully pass through the Senate, it could act as a significant upward catalyst for Bitcoin. Yet, even a favorable vote for the crypto sector might trigger profit-taking, as market attention would quickly pivot to the Federal Reserve's interest rate decision on Wednesday.

The Federal Open Market Committee's (FOMC) outcome holds equal weight for Bitcoin: a more aggressive hawkish signal could push Treasury yields and the U.S. dollar higher, thereby pressuring risk assets, while a dovish tone would likely provide a supportive boost. Conversely, given the bill's importance to the crypto industry, a failure of the "Clear Act" vote could spark a sell-off in digital assets, adding to the uncertainty currently hanging over the market. Overall, the regulatory momentum within the crypto landscape continues to build, as the Securities and Exchange Commission (SEC) has proposed new rules to exempt select crypto startups from full registration requirements, and the Commodity Futures Trading Commission (CFTC) has recently unveiled related domestic regulatory measures.

Wolfe Research commented on Bitcoin, stating that while the market's resilience is commendable, prices have already been consolidating below $80,000 for over two weeks. The firm added that following the preceding rally, "once the overbought conditions are fully digested, Bitcoin still has ample room for upside." Wolfe Research identifies $82,000 as a key resistance level and $76,000 as a crucial support zone.