Key Takeaways
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Fidelity’s Jurrien Timmer says Bitcoin may have long-term power law support near $56,000.
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Some traders argue the same chart could leave room for a deeper decline toward $29,000.
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Weak spot demand contrasts against growing calls that Bitcoin has entered a long-term buy zone.
Bitcoin’s price outlook has returned to the spotlight after Fidelity Investments’ global macro director Jurrien Timmer suggested the crypto may be entering another accumulation phase, with its long-term “power law” model indicating support around $56,000.
The comments come as debate over Bitcoin’s bottom intensifies, with some traders arguing the same chart leaves room for a drop toward $29,000.
Fidelity’s Power Law Model Points to Key Support
Last week, Fidelity Global Macro Director Jurrien Timmer said Bitcoin was approaching another accumulation zone as the crypto trades increasingly close to its long-term power law support line.
“At $60k it’s getting ever closer to its power law support line,” he wrote.
The chart plots Bitcoin’s historical price within a long-term valuation channel, with an orange support line and a green resistance line derived from the power-law model.
Based on the latest update, the support line currently sits near $56,500, while the upper resistance band extends well above current prices over the coming years.
Historically, Bitcoin has tended to spend prolonged periods below its trendline during bear markets before recovering toward the upper portions as new bull markets develop.
The lower section of the chart also identifies previous “accumulation zones,” which have generally coincided with major market bottoms — such as $15,476 in 2022.
The Same Chart Could Point to $29,000 Bitcoin Price?
While Timmer highlighted Bitcoin’s proximity to the model’s support line around $56,000, some market participants argue the chart does not rule out a substantially deeper decline.
Bitcoin is currently trading around $63,000, meaning a fall to roughly $29,000 would represent a decline of about 54% from current levels.
That would be broadly consistent with several of Bitcoin’s previous bear-market drawdowns.
In the past, the asset has routinely fell between 70% and 85% from cycle highs before establishing a lasting bottom.
CryptoQuant Saw a Potential Bottom in June
The debate over Bitcoin’s bottom has persisted for months.
In June, blockchain analytics firm CryptoQuant argued Bitcoin was approaching what could become a market bottom near $53,600, although it stressed that demand conditions had yet to confirm a lasting reversal.
