Bitcoin Price Prediction: BTC Could Hit $105,996 Despite Issues Around Clarity Bill

Highlights:

• Bitcoin is holding above the $94,048 resistance after a multi-week consolidation
• Intraday price action now puts $105,996 in focus
• Bitcoin’s strength despite issues with the regulatory bill could send BTC higher 

Bitcoin (BTC) is losing steam after a strong start to the week. At the time of writing, Bitcoin was trading at $95,525, down by 1.01% in the day. A significant drop has also followed this price action in Bitcoin’s intraday trading volumes. At the time of writing, Bitcoin trading volumes had dropped by 16.47% to stand at $49.53 billion. 

This drop in volumes on a day that the price is going down is an indicator that the average investor sees the intraday price action as temporary. The expectation is that there will likely be a bullish bias in the medium- to long-term. Besides, the minor price drop is mainly due to a regulatory issue, and this will likely improve over time. 

Issues with the Clarity Bill Temper BTC Momentum

Bitcoin’s pump earlier in the week was driven by expectations around the Clarity Act, which is expected to shape how investors interact with cryptocurrencies going forward. However, major players in the cryptocurrency industry suddenly withdrew their support for the bill. They argued that it was designed to sideline the cryptocurrency industry while entrenching the power of legacy financial institutions. One of the key industry players who has raised an issue with the bill is Brian Armstrong, the CEO of Coinbase. 

Armstrong noted that after carefully reading the bill, he could no longer support it. He said that the bill criminalized equity tokenization, banned DeFi, and removed yield from stablecoins. All this effectively means cryptocurrency would never be able to compete with legacy finance.

Several other industry players have raised concerns, forcing the Senate committee to postpone a vote on the bill. This has reduced investors’ expectations for the bill and, by extension, the momentum building across the cryptocurrency market. The result is that Bitcoin could enter another consolidation phase until there is clarity on the bill. 

ETF Inflows Likely to Help Push Bitcoin Higher

Long term, the odds look good for BTC because institutional investments continue to rise. Rising Bitcoin ETF inflows suggest institutions are using these financial instruments to buy Bitcoin. At the same time, institutions continue to add Bitcoin to their balance sheets.

A notable player on this front is Strategy (MSTR), which recently bought more than $1 billion worth of Bitcoin. Such corporate purchases continue to shrink the amount of Bitcoin available for trading. The result is that Bitcoin could rally to new highs, especially when the uncertainty around the Clarity bill clears up.

Weakening Dollar Could Help Sustain Bitcoin Momentum

Bitcoin also stands to benefit from a macro environment that favors risk-on assets. The US dollar has been going down in recent months. This trend is likely to continue as the US cuts rates more, making it unattractive to hold dollars for yield. The result is that capital will flow into risk-on assets with strong potential for value growth. Bitcoin has a history of parabolic price runs in bull markets. As such, investors seeking growth could continue gravitating towards Bitcoin for the better part of 2026.

Technical Analysis – BTC Breaks Out of Consolidation

After a multi-week consolidation between the $94,048 resistance and $85,302 support, Bitcoin broke out yesterday. Today, the price is holding above $94,048, a clear indicator that bulls are firmly in control. If bulls sustain the momentum above $94,048, Bitcoin could rally to $105,996 in the short term.

On the other hand, if bears take control and push BTC below the $94,048 support level, the multi-week consolidation could continue. Of these scenarios, the odds are higher for a rally to $105,996. That’s because the underlying demand for Bitcoin, mainly from institutions, is on the rise.