The CEO of the research company Galaxy Digital Research warns that the price of Bitcoin (BTC) may fall further. Due to a lack of positive impulses, the chance of a quick recovery seems small. A drop towards $56,000 would not even be ruled out.
Bitcoin price can be even lower
On Monday, Alex Thorne, head of Galaxy Digital Research, shared his views on the current market situation. According to him, there is a serious chance that the Bitcoin price will fall towards 70,000 and possibly even 56,000 dollars.
According to Thorne, the first limit, around $70,000, marks a so-called “supply gap”: an area in which supply is too low to reverse a further decline. New buying orders could emerge around that level, creating temporary support.
Thorne calls the zone around $56,000 based on the average cost of all Bitcoins in circulation. According to him, these types of levels have previously acted as bottoms during previous bear markets. He also mentions the 200-day moving average, around $60,000, as a possible support level.
Lack of positive impulses
According to Thorne, there is currently a lack of positive catalysts for the largest cryptocurrency. At the same time, Bitcoin has not been able to keep up with the performance of precious metals such as gold and silver in recent times. As a result, investors seem to be less likely to choose BTC as a safe haven.
After the weak weekend, the Bitcoin price rose slightly again on Monday, with an increase of three percent to approximately $ 78,500. Yet the current price is still more than 39 percent below the all-time high.
Investors are waiting
According to Thorne, there are few signs that investors are joining in en masse again. People may be waiting for lower prices. At the same time, there is a bright spot on the sales side.
Long-term holders appear to be tempering their urge to sell. This group was more likely to sell to take profits, which increased price pressure. Now that they are waiting for higher prices, this may temporarily reduce selling pressure.
Uncertainty about new American crypto law
In the background is also the unrest surrounding the American CLARITY Act, a bill that should bring clarity to the crypto sector. According to Thorne, the passage of the law could provide an important boost.
However, that approval is delayed. After crypto exchange Coinbase withdrew its support, support seems to be declining. Moreover, the US Senate Banking Committee has not yet scheduled a new date for further consideration. Political support appears to be fading and rapid legislation will not get off the ground for the time being.
Source: https://newsbit.nl/galaxy-topman-waarschuwt-bitcoin-koers-kan-dalen-naar-56-000-dollar/
