At the moment, bitcoin has closely approached the lower boundary of the long-term Power Law model — a key indicator I have been tracking since 2015. According to my calculations, under the current market conditions, this support line is around $58,000. The upper limit of the model, which has historically served as an overheating zone, is near $120,000.
This lower boundary area is traditionally viewed as an accumulation zone for major players. However, it is important to understand: the mere fact of reaching this line does not guarantee an immediate trend reversal. Without a powerful catalyst, such as a return of liquidity to the markets or a significant macroeconomic impulse, the price of bitcoin could remain stuck in a sideways movement near support for weeks or even months.
From my perspective, the current situation resembles the 2018–2019 period, when bitcoin spent several months at the support line before beginning a confident rally. Investors should be prepared for high volatility and possible false breakdowns. The key signal for entry is confirmation of the $58,000 level holding with an increase in trading volumes.