Galaxy Warns Bitcoin Could Drop to $56K as Momentum Fades

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Galaxy Warns Bitcoin Could Drop to $56,000 as Momentum Fades

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 03, 2026

Key Takeaways

Galaxy’s Alex Thorn warns Bitcoin could dip toward $56,000 as upside drivers remain weak;
Bitcoin lost key technical supports, including its 50-week average, now near $58,000;
Long-term holder buying is limited, though slower profit-taking hints at nearing a bottom.

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Galaxy Warns Bitcoin Could Drop to $56,000 as Momentum Fades

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Bitcoin BTC $75,646.57 might keep sliding because there are few clear reasons for the price to rise again, according to Galaxy Digital’s research head, Alex Thorn.

In a recent market note, Thorn said there is a good chance Bitcoin could slip toward the lower end of a supply gap near $70,000 and then test around $56,000.

He explained that Bitcoin’s recent behavior does not match that of assets like gold or silver, which are often viewed as a hedge against currency debasement.

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Thorn also pointed out that during past downturns, Bitcoin prices have often dropped below the realized price, the average purchase cost, before finding support below it.

He mentioned another key reference point: the 200-week moving average, which shows the average price over roughly four years. He noted that Bitcoin has found stability around this level in each of the last three bull cycles after falling under the 50-week moving average.

According to Thorn, Bitcoin lost support at the 50-week mark in November, while the 200-week average is now near $58,000.

However, Thorn sees limited evidence that large investors or long-term holders are adding to their positions.

He said that profit-taking by long-term holders has slowed, which reduces selling pressure. Still, some investors may plan to sell only when the price rises again, which could make it harder for Bitcoin to break upward.

About 70% of institutional investors view Bitcoin as undervalued at $85,000 to $95,000, according to Coinbase’s $2.66B Q1 2026 report. Why? Read the full story.