- Bitcoin bounced after defending key support near the $79K level this week.
- Analysts expect BTC to retest recent highs and possibly rally toward $90K ahead.
- US crypto optimism rose after the CLARITY Act passed the Senate Banking Committee with a 15-9 vote.
Bitcoin is showing signs of renewed strength after successfully holding above support near the $79,000 level, with several market analysts now expecting the cryptocurrency to continue its upward trend in the coming weeks.
Crypto analyst Michaël van de Poppe said Bitcoin’s recent rebound from its 21-day moving average suggests the broader rally remains intact. According to him, there are currently few signs pointing toward a major correction, while market structure and momentum indicators continue to support a bullish outlook.
Van de Poppe explained that Bitcoin could soon retest recent highs before potentially moving toward the $90,000 mark. He added that the May-June period could become crucial for the market as traders watch whether Bitcoin can sustain momentum above current resistance levels.
CLARITY Act Arrives
At the same time, excitement around the broader crypto industry has also increased following progress on crypto regulation in the United States.
The CLARITY Act passed the Senate Banking Committee with a 15-9 vote, calling it a major step forward for the digital asset sector. The development could eventually lead to a Senate-wide vote and is being viewed by some investors as a positive signal for long-term crypto adoption.
Many market participants say clearer regulations could encourage more institutional participation and improve confidence across the crypto market.
CryptoQuant Says Bitcoin Still Undervalued
Meanwhile, an analyst from CryptoQuant suggested Bitcoin may still be undervalued despite its recent gains.
The analyst said its proprietary ETF Flow Impact Score or EFIS model currently estimates Bitcoin’s fair value at around $88,144, placing the asset roughly 11.2% below that level. They believe continued ETF inflows could help narrow the gap between Bitcoin’s current market price and its estimated fair value.
Analysts Watch Ascending Channel Pattern
Another market analyst, Ali Martinez, pointed to Bitcoin’s ongoing ascending channel pattern that has guided price action since early April.
According to Martinez, Bitcoin has repeatedly bounced higher whenever it has touched the channel’s rising support line. Bitcoin rebounded from around $71,000 on April 13 before rallying 11% toward $78,000. A similar move occurred at the end of April when BTC held support near $75,000 and later climbed above $82,000.
Martinez said Bitcoin is once again testing the lower boundary of the same channel near $79,000. If support continues to hold, he believes BTC could rebound toward the upper end of the range near $86,000.
However, he also warned that a breakdown below the support zone could weaken the current bullish structure and trigger another move toward lower price levels.
Related: Bitcoin Reclaims $81K After $109 Million Long Liquidation Event
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