“In each of the three bull cycles, the 50-week moving average served as a key support level, but after it was broken, the price ultimately moved towards the 200 week moving average,” the report said.
Galaxy's historical model shows that it was precisely this zone ($56,000 - 58,000) that served to form the bottom and reversal in previous cycles.
Based on data on the latest movements of Bitcoin, Galaxy also noted a critical gap in the $70,000 - 80,000 range. According to experts, relatively few coins were bought at these levels, which forms a zone with weak support. The bulk of sales since early October have come from investors who bought
Bitcoin above $111,000. While there were significant purchases in the $80,000–92,000 range, these coins could create strong resistance to any price recovery.
In percentage terms, the ratio between bitcoins bought at lower and higher prices relative to current values was 56% to 46%. The report noted that in all previous periods of market decline, these indicators converged to close to 50/50.