Bitcoin is hitting lows more often than it is reaching local highs. Every major rally is followed by slow and steady sell-offs, a pattern that suggests a broader crypto market correction may be looming.

Meanwhile, the US Securities and Exchange Commission (SEC) issued guidance yesterday clarifying that certain types of liquid cryptocurrency staking do not constitute offers or sales of securities. This marks a victory and a significant step in the agency's ongoing efforts to offer clearer regulatory guidance for digital assets. It also eases the cloud of uncertainty that has long hovered over the industry, allowing market participants to develop their products and services more confidently within the bounds of the law. Previously, the lack of clarity had sparked fears and stifled innovation, as companies were wary of unintentionally violating securities regulations.

While the SEC's decision is not all-encompassing, it sets an important precedent, signaling the regulator's willingness to engage with the industry and adapt its rules to emerging technologies. Still, several issues remain unresolved and will require further discussion and clarification.

"The statement clarifies the division's view that, depending on the facts and circumstances, the liquid staking activities covered in the statement do not involve the offer and sale of securities," the SEC said Tuesday, citing key provisions of the 1933 Securities Act and the 1934 Exchange Act. In its staff bulletin, the SEC defined liquid staking as the process of staking digital assets through a protocol that provides proof of ownership to the staker.

"Today's staff statement on liquid staking is a significant step forward in clarifying the staff's view about crypto asset activities that do not fall within the SEC's jurisdiction," SEC Commissioner Paul Atkins said.

The SEC's clarification comes amid growing institutional interest in liquid staking exchange-traded funds (ETFs), with firms like Jito Labs, VanEck, and Bitwise urging the agency to approve liquid staking strategies for Solana-based funds.

According to DefiLlama, liquid staking is now one of the largest subsectors in the crypto space, with total value locked (TVL) across all protocols approaching $67 billion. Ethereum accounts for $51 billion of that total.

Trading Recommendations:

Buyers of BTC are currently targeting a return to the $114,500 level, which would open the path to $115,900 and potentially push the price toward the $117,500 zone. The ultimate upside target stands at $118,800—a breakout above that would signal a strengthening of the bull market. In the case of a decline, buyers are expected near $112,800. A drop below this area could send BTC tumbling toward $110,500, with the final downside target at $108,200.

As for Ethereum, a solid hold above $3,717 paves the way for a rise toward $3,827. The furthest target is $3,941; a breakout here would confirm renewed buyer interest. If ETH declines, buyers will likely step in at $3,601. A break below this support could drive the price quickly toward $3,505, with the final downside target at $3,383.

What we see on the chart:

• Red lines: Support and resistance levels where the price may either stall or rally
• Green lines: 50-day moving average
• Blue: 100-day moving average
• Light green lines: 200-day moving average

Typically, price interactions with moving averages either pause the trend or set a new directional impulse for the market.