Bitcoin is nearing a power law support line Fidelity has tracked since 2015
Bitcoin is approaching a long-term power law support line that has historically marked major price bottoms since 2015. Analysts suggest that while the asset is in an accumulation zone, a lack of market liquidity may prevent a rapid price reversal.
Why it matters
Understanding historical price support models is essential for institutional and retail investors navigating current volatility in the cryptocurrency market.
That model is the power law, which plots bitcoin's entire price history on a logarithmic chart bounded by three curves — an upper resistance line, a middle trendline, and a lower support line that has caught every major bottom since 2015.
On Timmer's latest chart the support line sits near $58,000, and bitcoin at about $62,700 is closing in on it.
The lower panel is where he expects accumulation. It tracks how far bitcoin trades above or below the power law trendline, and that gap has swung to negative 56%, a depth the chart labels the accumulation zone and one that lined up with the 2018 and 2022 lows. The 52-week reading on the bitcoin-to-gold ratio has fallen just as far, to around negative 100%.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in