Fidelity: BTC approaching long-term buy zone near $58K

Bitcoin is approaching the $58,000 lower support line of its Power Law model, which represents a good long-term buying opportunity, according to an analysis by Fidelity. Jurrien Timmer, the firm's director of global macro, explained that this lower band has historically been an accumulation zone where major bottoms were formed. He noted the current price is 56% below the median trend line, a deviation similar to those seen in 2018 and 2022. However, Timmer cautioned that the speculative momentum that drove BTC above $120,000 last year has dissipated. With global monetary supply growth slowing, he sees a lack of liquidity catalysts to fuel a rebound. Timmer suggested that BTC could consolidate near this support level for several months rather than bouncing back quickly, adding that short-term speculative funds have rotated from BTC to gold and subsequently to semiconductor stocks.