Bitcoin Braces for Tough $60K Test as Momentum Fades

Bitcoin is sitting near $61,600 and traders are watching the very closely. A recent warning from a top Fidelity expert has put this level in the spotlight as the next big test for the market.

Power-Law Floor Draws Attention

Fidelity macro director Jurrien Timmer shared an update on July 2 that placed a power-law support line near $58,237. This model looks at Bitcoin price history on a log scale and shows upper, middle, and lower trend lines. The lower line now acts like a floor that many traders are tracking.

If Bitcoin slips below this area it could open the door to more selling. The asset already hit its lowest point since September 2024 and sits more than 51 percent under its October 2025 peak near $126,198.

ETF Flows Turn Volatile

Spot Bitcoin ETFs saw sharp swings in recent days. First $296 million left the funds, then $223.5 million came back in. These moves show that big investors are still active but not fully committed right now.

Steady inflows usually help push prices higher. When money moves in and out quickly it adds to the feeling that demand is softening.

Citi Lowers Its Price Target

At the same time Citi cut its 12-month Bitcoin forecast to $82,000. The bank pointed to weaker interest from big institutions as the main reason. Lower targets from major banks can make some traders more careful about taking big positions.

What Traders Should Watch Next

The next few weeks will likely focus on whether Bitcoin can stay above the . A clean hold could bring back some confidence. A break below it might lead to faster drops as stop-loss orders trigger.

Traders are also keeping an eye on ETF flow numbers each day. Consistent buying from these funds would be a positive sign. On the other hand more large outflows could push prices toward the lower end of the current range.

Overall the market is in a wait-and-see mode. The $60,000 area has become the line in the sand that everyone is talking about.