When Will the Bitcoin Trend Turn Bullish? A Fidelity Executive Shares Critical Levels and Expectations!

Bitcoin, the leading cryptocurrency, has recovered from sharp drops that fell below $58,000, rising to levels around $61,600.

While it is wondered whether this recovery is a trend reversal, a Fidelity executive explained the necessary condition for a trend reversal in Bitcoin.

Accordingly, Jurrien Timmer, Global Macro Director at Fidelity Investments, argues that a clear trend reversal in BTC is difficult without new liquidity.

Jurrien Timmer noted that Bitcoin tested its long-term support level around $60,000, and analyzed that a clear trend reversal is unlikely without global liquidity flow.

According to Timmer’s analysis, BTC has approached its historical trend line but lacks bullish catalysts in the current macroeconomic environment.

Timmer stated that his analysis was based on the Power Law model, identifying $60,000 as a significant psychological and technical turning point. He also noted that the model’s lower support line was at $58,237.

Timmer noted that historically, market bottoms have formed near this support level, citing 2015, 2018, and 2022 as examples.

However, Timmer emphasized that the upside premium that powered past bull markets has been exhausted and that a new wave of global liquidity is needed for BTC to break above its trendline.

Consequently, Timmer believes that with the slowdown in global money supply growth and the disappearance of the speculative premium that once pushed prices toward $120,000, it is difficult to pinpoint a near bottom, suggesting that a period of sideways movement may occur before a true upward reversal.

*This is not investment advice.

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