Fidelity Signals End of Bitcoin Winter and New Cycle
Fidelity believes the current Bitcoin winter has concluded and a new four-year bull market is underway, according to AMBCrypto. Jurrien Timmer, Fidelity Head of Global Macro, noted that Bitcoin has sustained levels above $60,000 for approximately one year, with the Bitcoin-to-gold correlation turning positive. Timmer stated that these signals point to a durable market bottom and the early stages of a fresh cycle. He also pointed to a higher cost of capital regime, suggesting that potential government intervention and monetary expansion could increase demand for scarce assets like Bitcoin.
The macroeconomic outlook coincides with positive technical developments on the price charts. Bitcoin recently rallied to reclaim the $80,000 mark after crude oil prices dropped below $100 per barrel, easing inflation fears and boosting broader markets. AMBCrypto reported that the recent price action closed above the 50-week Moving Average, a key technical level that analysts watch to determine trend reversals. Galaxy Research Head of Research Alex Thorn noted that the move appears legitimate, though a full confirmation depends on a sustained weekly candlestick close above that threshold.
Additional commentary from market participants indicates potential for further upside, contingent on overcoming key resistance levels. Trader Bob Loukas stated that clearing the May high of $82,000 could drive prices past $90,000. Conversely, failure to break that resistance might prompt a retest of lower support levels near $60,000, with the 200-day Moving Average and short-term holder realized price acting as floors. Institutional derivatives data cited by AMBCrypto indicates a 35% probability that Bitcoin could reach $95,000 if it successfully clears the May high, while the probability for the psychological $100,000 level stands at 18%.
Based on reporting by ambcrypto.com.
