Analysts warn of possible Bitcoin drop
According to a report by analytics firm Galaxy, Bitcoin may soon drop to the $56,000 level. This is because it is currently difficult to find drivers for a significant increase in the first cryptocurrency.
According to Alex Thorn, head of research at Galaxy, Bitcoin's current realized price is $56,000. Without clear catalysts for a rally, the Bitcoin rate is likely to decline to this level.
Realized price is the average price at which each Bitcoin was last traded. This indicator can serve as a good benchmark for determining key support and resistance levels.
Recently, Bitcoin has shown lateral dynamics, fluctuating in the range of $57,000 - $60,000. Without new positive drivers, such as institutional investments or active adoption by major corporations, the rate of the first cryptocurrency risks dropping to the psychologically important mark of $56,000.
However, the long-term prospects for Bitcoin remain positive. Many experts are confident that within a year the rate of the first cryptocurrency will update historical highs. However, in the short term, a correction is possible, which traders and investors should take into account.