Bitcoin's bottom is still being debated — with concerns it could fall much further. | Source: CCN.
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Key Takeaways
Fidelity’s Jurrien Timmer says Bitcoin may have long-term power law support near $56,000.
Some traders argue the same chart could leave room for a deeper decline toward $29,000.
Weak spot demand contrasts against growing calls that Bitcoin has entered a long-term buy zone.
Bitcoin’s price outlook has returned to the spotlight after Fidelity Investments’ global macro director Jurrien Timmer suggested the crypto may be entering another accumulation phase, with its long-term “power law” model indicating support around $56,000.
The comments come as debate over Bitcoin’s bottom intensifies, with some traders arguing the same chart leaves room for a drop toward $29,000.
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Last week, Fidelity Global Macro Director Jurrien Timmer said Bitcoin was approaching another accumulation zone as the crypto trades increasingly close to its long-term power law support line.
“At $60k it’s getting ever closer to its power law support line,” he wrote.
The chart plots Bitcoin’s historical price within a long-term valuation channel, with an orange support line and a green resistance line derived from the power-law model.
As for Bitcoin, it too may be in an accumulation zone (in my view). At $60k it’s getting ever closer to its power law support line. pic.twitter.com/M3T3rDGFMx
Based on the latest update, the support line currently sits near $56,500, while the upper resistance band extends well above current prices over the coming years.
Historically, Bitcoin has tended to spend prolonged periods below its trendline during bear markets before recovering toward the upper portions as new bull markets develop.
The lower section of the chart also identifies previous “accumulation zones,” which have generally coincided with major market bottoms — such as $15,476 in 2022.
The Same Chart Could Point to $29,000 Bitcoin Price?
While Timmer highlighted Bitcoin’s proximity to the model’s support line around $56,000, some market participants argue the chart does not rule out a substantially deeper decline.
Bitcoin is currently trading around $63,000, meaning a fall to roughly $29,000 would represent a decline of about 54% from current levels.
That would be broadly consistent with several of Bitcoin’s previous bear-market drawdowns.
In the past, the asset has routinely fell between 70% and 85% from cycle highs before establishing a lasting bottom.
CryptoQuant Saw a Potential Bottom in June
The debate over Bitcoin’s bottom has persisted for months.
In June, blockchain analytics firm CryptoQuant argued Bitcoin was approaching what could become a market bottom near $53,600, although it stressed that demand conditions had yet to confirm a lasting reversal.
CryptoQuant Head of Research Julio Moreno said Bitcoin’s realized price — around $53,600 at the time — represented a potential valuation floor.
The firm noted Bitcoin had already suffered its third correction of more than 25% during the downturn.
However, CryptoQuant said demand remained “deeply unfavorable.”
Those concerns have continued into July.
According to CryptoQuant analyst Darkfost, Bitcoin’s spot demand has remained negative since December 2025.
It reached its weakest level of the current cycle in mid-June at negative 273,000 BTC before recovering to around negative 100,000 BTC this week.
Despite the improvement, Darkfost said the reading still points to a significant shortage of genuine spot buying.
The DeFi Report Said Bitcoin Price Had Entered a ‘Buy Zone’
Also in June, analysts at The DeFi Report argued Bitcoin was in an attractive long-term buying range.
Lead analyst Michael Nadeau compared current conditions with the latter stages of the 2018 and 2022 bear markets.
“We’re now the ball’s in their court,” Nadeau said, referring to investors who had remained patient during the correction.
“They have the ability to buy up coins at really depressed levels.”
Nadeau added that investors with a longer-term outlook could become increasingly comfortable accumulating Bitcoin.
“I think generally speaking, we’re in the kind of phase of the market where you can be comfortable with a longer-term time horizon as an investor,” he said.
While based on a different methodology, Fidelity’s assessment aligns with DeFi Report’s views back in June that Bitcoin was in an accumulation phase.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
