Bitcoin experienced a solid correction yesterday during the US trading session. The movement from $125,000 down to $120,500 was quite active, after which the first buyers began to step in, suggesting that the bullish rally is clearly not yet over.

Yesterday, media outlets reported that the SEC is preparing an innovative exception for crypto projects. This will be a so-called "special regime" that allows startups to test blockchain solutions under regulatory supervision, without fear of immediate lawsuits or penalties.

This step could mark a breakthrough in the relationship between the crypto industry and the SEC, which has been tense recently due to numerous lawsuits and investigations. The regulator intends for the new regime to promote blockchain innovation by allowing startups to test their technologies in a controlled and supervised environment. It is assumed that companies wishing to participate in this regime will need to undergo a strict selection process and coordinate a product testing roadmap with the SEC. The regulator will closely monitor each project to ensure they comply with investor protection and anti-money laundering standards.

Experts believe that, if successful, the new regime could become a model for regulators around the world. It would help strike a balance between encouraging innovation and protecting consumer rights in the digital asset market. However, there are concerns that the framework may be too complex or costly for most startups, which could limit its utility. Nevertheless, this is certainly a positive signal that may attract new entrepreneurs and developers into the blockchain space and help legitimize the industry in the eyes of the general public.

It is clear that this new format will provide an opportunity for legal experimentation in areas like DeFi, tokenization, and payment services, while allowing the SEC to observe how these systems perform in real-world conditions.

Trading recommendations:

As for the technical picture on Bitcoin, buyers are currently targeting a return to the $122,200 level, which opens the way to $124,300. From there, the market is within reach of $126,400. The furthest upside target is in the $129,100 range. Breaking above this level would indicate a further strengthening of the bull market. In case of a decline, buyers are expected to pay around $119,700. If the price drops below that zone, BTC could quickly fall to about $117,100. The most distant support level is in the $115,100 area.

Regarding Ethereum, a clear consolidation above $4,502 opens a direct path to $4,582. The furthest target is the $4,651 zone. Surpassing this level would signal an expanding bull trend and increased investor interest. If Ethereum declines, buyers are expected at the $4,403 level. A drop below this area could quickly push ETH down to the $4,318 zone, with the furthest downside target at $4,244.

What is on the chart:

- Red lines indicate support and resistance, where short-term price slowdowns or active growth are expected;

- Green lines 50-day moving average;

- Blue lines 100-day moving average;

- Light green lines 200-day moving average.

A crossover or test of the moving averages generally either halts the market or sets a new momentum.