Fidelity Analyst Notes Bitcoin Approaching Long‑Term Power‑Law Support Near $58K

Jurrien Timmer, Fidelity’s director of global macro, observes that bitcoin is moving toward the lower boundary of the model he has monitored for years.

The framework, based on a power‑law relationship, charts bitcoin’s entire price history on a log scale using three lines: an upper resistance, a middle trend, and a lower support that has marked every major trough since 2015.

According to Timmer’s most recent chart, the support level rests near $58,000, while bitcoin trades around $62,700, edging closer to that line.

The lower panel highlights where he anticipates accumulation. It measures bitcoin’s deviation above or below the power‑law trendline; the current spread has dropped to –56%, a zone the chart designates as the accumulation area that coincided with the 2018 and 2022 lows. Similarly, the 52‑week bitcoin‑to‑gold ratio has slipped to roughly –100%.

Timmer stops short of declaring a bottom. He notes that the speculative surge that lifted bitcoin above $120,000 last year has largely faded, global money‑supply growth is decelerating, and he sees no trigger for a turnaround until liquidity improves.

Source link