Bitcoin's $70K Support: A Launchpad for the Next Rally?

Jurrien Timmer, director of global macro at Fidelity Investments, believes Bitcoin's key support level to watch is $70,000. He suggests that the recent correction may be a setup for the next rally, with Bitcoin now returning to a more "grounded" valuation.

Timmer’s valuation model, based on the internet S-curve and wallet growth power curve, signals Bitcoin's long-term growth potential despite the pullback. Currently, Bitcoin trades at $83,016, marking a 0.3% daily gain. However, Bloomberg's Mike McGlone warns that Bitcoin could drop further to $70,000, continuing its underperformance against gold.

Bitcoin has fallen over 10% year-to-date, significantly lagging behind the yellow metal. Meanwhile, Bitcoin ETFs have recorded seven consecutive days of outflows, indicating declining institutional interest. Despite this, on-chain data from CryptoQuant reveals that whales have accumulated 65,000 BTC in the past 30 days, suggesting confidence in Bitcoin’s future gains.

As the crypto market navigates volatility, investors are closely monitoring Bitcoin’s support levels. Whether this correction marks a temporary setback or a launchpad for the next rally remains to be seen.