Bitcoin Faces Risk of Deeper Correction to $56K, Galaxy Warns; Catalysts “Hard to Find”

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Bitcoin’s recent downturn could extend significantly, with Galaxy Digital’s research lead Alex Thorn flagging a “significant chance” the cryptocurrency falls toward $56,000.

In a Monday note, Thorn argued that catalysts for a rebound “remain hard to find,” and negative narratives are persisting as Bitcoin decouples from the precious metals hedge trade.

He outlined a path where Bitcoin first fills a supply gap near $70,000 before testing its “realized price”—the average acquisition cost of all circulating BTC—currently at $56,000. Historically, Bitcoin has found a bear market bottom at or slightly below this metric.

Thorn also noted that Bitcoin has lost its 50-week moving average support, potentially opening a test of its key 200-week moving average, which currently sits near $58,000. Bitcoin traded just under $78,500 Monday, still down 39% from its October peak.