Galaxy Digital: Bitcoin may test the 200-week moving average of $58,000 within months.
PANews reported on February 3rd that Alex Thorn, Head of Research at Galaxy Digital , analyzed that Bitcoin's recent price weakness, with a 15% drop between January 28th and 31st, including a sharp 10% single-day decline on January 31st, triggered over $2 billion in long contract liquidations. Bitcoin's price fell to a low of $75,644, breaking below the average cost price of $84,000 for the US Bitcoin ETF and approaching the annual low of $74,420 reached in April 2025. Currently, 46% of the Bitcoin supply is at a loss.
Analysts suggest that Bitcoin could further decline to the bottom of the supply gap around $70,000, and even test the 200-week moving average (approximately $58,000) and the realized price (approximately $56,000). These two price levels historically typically mark cycle bottoms and offer strong entry opportunities for long-term investors.
Furthermore, while profit-taking by long-term holders has slowed, there are no signs of large-scale accumulation by whales or long-term holders in the market. The report also notes that Bitcoin's recent failure to rise in tandem with traditional safe-haven assets like gold and silver weakens its narrative as a "currency devaluation hedge." Analysts believe that Bitcoin may continue to face downward pressure in the coming weeks and months, but long-term investors can look for entry opportunities at key support levels.
You May Also Like
Coinbase CEO advocates for crypto legislation reform in Washington DC
Forex Expo 2025 Redefines the Trading Landscape
