Recently, Alex Thorn from Galaxy Digital stated that Bitcoin’s realized price is hovering around $56,000, suggesting a possible drop without positive market influences.

In his recent report, Thorn emphasized:

“Catalysts remain hard to find and narratives are also working against Bitcoin…”

Thorn forecasts that Bitcoin may fall to the average realized price, which reflects the average expenses of all circulating BTC. As of Monday, Bitcoin’s value temporarily increased by 3% to approximately $78,500 but remains 39% down from its all-time high of over $126,000 earlier in October, according to CoinGecko.

Support Levels

Thorn analyzed historical trends, pointing out that Bitcoin often finds a floor at its realized price during bear markets.

“Those levels have historically marked cycle bottoms.”

Furthermore, he mentioned that significant support was present at its 200-week moving average, estimated at $58,000.

Long-term Holder Behavior

Thorn noted:

“The recent decline in long-term holder realized profit-taking is notable and should signal we are closing in on a bottom.”

While large buyers have not accumulated significantly, he suggested that long-term holders may be awaiting higher prices before selling.

Market Structure Legislation

The crypto community is keeping a close eye on the US Senate’s potential passage of a market structure bill. However, Thorn indicated that the chance of passage has diminished.

For further details, read the complete analysis here.