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.
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