According to my analysis, bitcoin has closely approached the lower boundary of long-term support, as defined by the Power Law model. This indicator, which I have been tracking for many years, points to a critical level around $58,000 at the current market price. The upper boundary of the model, in contrast, passes near the $120,000 mark, forming a wide corridor for the asset's movement.
Jurrien Timmer, Director of Global Macro, rightly calls the current zone an accumulation area. However, it is important to emphasize: this does not automatically mean the market bottom has been reached. Without a significant catalyst—primarily, the return of liquidity to global markets—the price of bitcoin could get stuck in a sideways trend near the support line for several months.
From my professional perspective, such consolidation near the lower boundary of the Power Law is a classic sign of control transitioning from "weak hands" to institutional players. If the macroeconomic situation does not sharply deteriorate, this is precisely where the foundation for the next bull rally is being formed. However, without an influx of liquidity, one should not expect a breakout to the upside in the coming weeks.