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Bitcoin has closely approached the lower boundary of the long-term Power Law model, which has served as a reliable indicator of structural support and resistance levels since 2015. According to my calculations, the current support line is around the $58,000 mark, while the upper boundary of the model is estimated at approximately $120,000. This means the asset is in a zone where consolidation historically occurs before significant movements.

Accumulation zone or a bull trap?

Global macro director Jurrien Timmer has called the current range an accumulation area. However, I would emphasize that this does not guarantee an immediate trend reversal. Without a clear catalyst—such as a return of liquidity to the markets or macroeconomic positivity—Bitcoin could remain stuck in a sideways pattern near this support line for several months. The market is now waiting for a signal: either a break below $58,000, which would be a bearish scenario, or a confident bounce.

It is important to note that the Power Law model is not an absolute predictor. It reflects a long-term correlation between price and time, but short-term fluctuations can be driven by speculative flows or regulatory news. Nevertheless, for institutional investors such as Fidelity, this zone remains a critical entry point.

My conclusion: the current situation resembles a classic struggle between bears testing support and bulls awaiting liquidity. If Bitcoin holds above $58,000 for several weeks, this could lay the foundation for a new upward cycle. However, without an external impulse, the market risks remaining in a range until the end of the year.