Bitcoin Faces Potential Downside Pressure, Analyst Suggests Key Support Levels

Alex Thorn, head of research at Galaxy Digital, has indicated that Bitcoin's recent subdued performance could signal a further decline in the coming weeks or months. Thorn's analysis points to the 200-week moving average, currently situated near the $58,000 mark, as a potential price target.

Thorn highlighted that a significant portion of Bitcoin's circulating supply, approximately 46%, is now trading below its acquisition cost. Furthermore, he observed a notable supply imbalance in the $70,000 to $80,000 range. The cryptocurrency's failure to perform as a hedge against currency debasement, in tandem with gold and silver, has also weakened its established narrative. Historically, both the 200-week moving average and the realized price, around $56,000, have represented opportune entry points for long-term investors.

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