Galaxy Research Warns of Deeper Bitcoin Pullback as BTC Weakens

Published: 2026-02-02 23:37:26 |

Bitcoin (BTC) has shown renewed weakness, prompting Galaxy Digital’s head of research to warn of a potential deeper pullback. Price action indicates downside risk as key support levels are tested; analysts cite deteriorating market structure and low momentum. The warning from a prominent institutional research team adds weight to bearish sentiment among traders, potentially increasing short-term volatility. Traders are advised to monitor critical BTC support levels, on-chain indicators, and macro cues — including risk appetite and liquidity — which could accelerate moves lower if negative. While the pullback risk is emphasized for the near term, longer-term holders may view dips as accumulation opportunities depending on broader macro stability and regulatory developments.

Bearish

Galaxy Digital’s head of research flagging a deeper Bitcoin pullback is a notable bearish signal because it comes from an institutional source followed by many traders. The report points to weakening price structure and low momentum while key supports are being tested — conditions that typically precede further downside or heightened volatility. Historically, similar institutional warnings and confirmation of technical breakdowns have led to short-term sell-offs as leverage is flushed and risk-off sentiment spreads (examples: post-2018 corrections and flash crashes in 2021–2022 when macro shocks or liquidity events occurred). For trading: expect increased short-term volatility, higher probability of retests of lower support levels, and potential opportunities for short trades or hedges. For longer-term investors, the signal does not necessarily invalidate bullish fundamentals but advises caution: accumulation may be appropriate on confirmed lows and improved macro/flow conditions. Key indicators to watch are BTC support zones, funding rates, on-chain flows, macro liquidity, and any regulatory announcements — these will determine if the pullback is shallow or evolves into a deeper correction.