Jurrien Timmer, the global macro director at Fidelity Investments, has expressed his belief that the $60,000 mark likely signifies the lowest point in the current market cycle.
He contended that this decline to such a level aligns with the “support zone” he had forecasted several months prior.
“At last, Bitcoin dropped to $60k last week, which falls within the support range I indicated a few months back when I suggested that another four-year bullish market cycle had probably concluded,” Timmer stated.
The analyst asserts that the previous bullish phase has officially ended and we are now entering a period of consolidation.
The “shallow” winter
Timmer is of the opinion that this recent downturn indicates Bitcoin’s evolution into a more mature asset class.
He believes Bitcoin’s price fluctuations are becoming less extreme as it gains traction among institutional investors.
Despite being quite severe, this latest drop sees prices stabilizing at levels much higher than those seen in earlier cycles.
“A retreat to ‘only’ $60k would be considered relatively mild for a Bitcoin winter; however, as this commodity currency matures, its volatility should diminish,” he remarked.
Identifying the bottom
Timmer seems optimistic that we may have already witnessed peak selling pressure. The forthcoming accumulation phase is anticipated to pave the way for an upcoming bull market.
“It’s uncertain whether $60k will be recognized as the low point; however, my inclination is towards it being so. After some time spent consolidating and adjusting prices, I believe we will see another cyclical bull market emerge.”
His optimism is grounded in technical models he referenced.
“Drawing from historical patterns of past cycles—though these do not guarantee future performance—I sense any subsequent waves could ultimately lead us to new peaks.”
The resilient gold
Additionally,Timmer highlighted how “digital gold” diverged from physical gold amid recent turbulence. While Bitcoin faced significant liquidation pressures , traditional gold demonstrated its strength as a safe-haven asset during times of liquidity strain .
“Although both silver and Bitcoin experienced substantial declines last week (at least until Friday), gold remained remarkably stable,” noted Timmer .