Bitcoin’s Safety Net Comes into View as Galaxy Digital Warns of Deeper Pullback
Galaxy Digital warns Bitcoin may fall toward long-term support near $58,000 despite potential cyclical bottom formation.Summary
Following a sharp late-January sell-off that triggered over $2 billion in long liquidations, Galaxy Digital's head of research, Alex Thorn, suggests Bitcoin faces elevated downside risks, potentially drifting toward $70,000 and then long-term technical support near the 200-week moving average (around $58,000).
Thorn noted that 46% of Bitcoin's supply is currently held at a loss, a level historically linked to bear market bottoms, and that the thin ownership zone between $70,000 and $80,000 could exacerbate further drops. Furthermore, Bitcoin's failure to rally alongside gold amid macro uncertainty weakens its safe-haven narrative.
However, some indicators offer a potential safety net: long-term holder selling is abating, and historical patterns suggest a possible rotation from gold into risk assets like Bitcoin could occur as economic expansion signals emerge, potentially making the $58,000 realized price/200w MA area a strong entry point for long-term investors.
(Source：BeInCrypto)