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Bitcoin nears Fidelity-tracked power law support line near $58,000

Fidelity’s Jurrien Timmer said bitcoin could drift sideways for months at the lower edge of the model without a liquidity catalyst.

Reported · Written up by our desk · Bitcoin

Bitcoin is closing in on the lower support line of a power-law price model that Fidelity has tracked since 2015, placing the cryptocurrency near a historically defined accumulation zone, CoinDesk reported. Fidelity director of global macro Jurrien Timmer said the support level sits around $58,000 while bitcoin was about $62,700 as the market approaches that boundary.

According to Timmer, measures that track how far bitcoin trades below its power-law trendline have fallen to depths last seen at the 2018 and 2022 lows. He cited a gap that has swung to about negative 56% and a bitcoin-to-gold ratio reading around negative 100% on a 52-week basis.

Timmer, however, said he is not yet calling a bottom. He pointed to fading speculative momentum after bitcoin surpassed $120,000 last year, slowing global money supply growth, and the lack of a clear catalyst for a reversal.

In addition, he said speculative capital has rotated out of bitcoin into gold, and then into semiconductor stocks. Timmer’s view is that bitcoin could remain near support for months before turning, rather than snapping back immediately.

Latest closeGold $4,128.90 ▼0.0%|Bitcoin $63,937.47 ▲0.2%

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