In a recent analysis, Alex Thorn of Galaxy Digital cautioned that Bitcoin may experience significant downward pressure, with the possibility of testing critical support levels at $70,000 and $56,000. This warning comes as the market displays signs of weakness, particularly following a break below a key threshold.
Thorn highlighted that the relative strength index (RSI) currently indicates an oversold condition, suggesting that the market may be due for a correction. Support levels between $78,000 and $76,000 are also under scrutiny, as any sustained decline could lead to further challenges for BTC.
Adding to the concerns, data shows that MicroStrategy has seen its base level broken, marking a significant shift as this is the first time Bitcoin has fallen below $80,000 since April 2025. This decline could signify a broader trend affecting long-term holders and the overall market sentiment.
As the cryptocurrency landscape becomes increasingly volatile, investors are advised to monitor these levels closely. The interplay of market dynamics and price movements will be crucial in the days to come, as traders assess the potential for recovery or further decline.
