Bitcoin is moving closer to the lower support line of a power-law model built from its full price history, according to CoinDesk, citing Fidelity Global Macro Director Jurien Timmer. He said that long-term support currently sits around $58,000, while Bitcoin is trading near $62,700, putting it close to what the model describes as an accumulation zone. Timmer did not say the market has already bottomed. Instead, he said Bitcoin may not rebound sharply in the near term and could spend several months fluctuating near that long-term support line. He also described a rotation in flows, saying short-term money had already exited and that capital moved from Bitcoin into gold, then from gold into semiconductor stocks. For now, he said, the market’s attention remains focused mainly on semiconductors.
Bitcoin is approaching the lower support line of a power-law model built on its full price history, CoinDesk reported, citing Fidelity Global Macro Director Jurien Timmer.
Timmer said that long-term support is currently around $58,000. With Bitcoin trading near $62,700, he said the asset is moving closer to that area and may already be in what the model defines as an accumulation zone.
No call on a market bottom yet
Timmer did not confirm that Bitcoin has bottomed. His view is that the market may not see a quick rebound right away and could instead trade around the long-term support line for several months.
Capital rotation has shifted away from Bitcoin
He also said short-term money had already left the market. In his account, capital rotated from Bitcoin to gold, and then from gold to semiconductor stocks. He added that the market is still chasing momentum mainly in semiconductors.
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